DECK - Deckers Outdoor - Bearish Flag
DECK gapped down on the open in 'sympathy' with CROX. It had been on my watch list for the last 2 weeks and I had previously posted the chart below on the blog as a potential bearish wedge.
After gapping down, DECK had retraced almost back to break even before falling again. Towards the lower end of the opening range high, it began forming a bearish flag. I entered on a break of the bearish flag.
Price declined in an orderly manner, and accelerated to the downside before it began to bounce off of the 123.6% Fibonacci extension. I took partial profits at it bounced from that level and tightened my stop. The trade stopped out shortly there after, and I ended up with a gain of a little less than 3R.
DECK looks to have the potential for some more downside here, especially if the market &/or retailers head lower.
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