Fossil stock price managed to hold critical dynamic support on its move lower from 2021 highs. By the time it reached the rising trendline, bulls had stepped in, and now the focus is on the next continuation pattern that the market may form.
The company is active in the apparel, accessories, and luxury goods industry, and it operates over four hundred stores worldwide. According to the last 10-Q filing, the company’s cash and cash equivalent position weakened in the first quarter of the year when compared to the same period last year, and inventories and accounts payables rose.
Fossil was briefly traded like a meme stock in 2021, participating in the stock market frenzy led by retail investors. The main attraction probably was the relatively low stock price, as at the time of the short squeeze, it was trading below $10.
From a technical perspective, Fossil looks bullish while above the rising trendline. As long as the dynamic support holds, Fossil may survive the bearish test and even aim for a new high.
An inverse head and shoulders may act as a continuation pattern here. Bulls may want to wait for the market to close above $17.50 before going long with $13 as a stop and $24 as take profit.
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