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|Includes: Crocs, Inc. (CROX)

On Jan 18th I posted this chart of CROX with a Bull Engulfing Pattern. At that time I suggested setting a purchase price above $20; with a sell target of $26.

Crox then moved into a sideways distributive pattern, which has lasted 13 days. Standard wave 2 retrace distributive patterns are 5 to 11 days. Crox moved higher out of this pattern on day 14, confirming the bull engulfing 2 candle set up; making this pattern more likely consolidation verses distributive.

Further backing the bull case is volume by price support above $18 per share.

Weekly shows the exhaustive spike down, followed by many weeks of consolidation of this spike.

On Balance Volume indicates a positive divergence beginning in late October that continues to gain strength and is now up trending above its 20 day sma.


I continue to believe the bull case for CROX. Once shares cross the Pivot resistance around $20.50, it should be an easy climb to the 50% Fib retrace area around $25.

Should earnings come in Feb 20th well above expectations, the share may well be looking $25 in the rear view mirror quickly.

Tim Kathlina