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.