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If you listened Crazy money On Friday night, you would have heard Jim Cramer 's action plan for the week' s action, which begins today with Stitch Fix, Inc. (SFIX). The online clothing company disappointed last quarter, but could return to growth this quarter.
SFIX reports after closing Monday. Let's check the graphs and indicators to see if they "match".
In this daily SFIX bar chart, below, we can see a potentially weak overall price picture. Prices rebounded from early June to mid-September to give a little more. Although prices recovered from the end of December, they failed under the 200-day flat average moving average. Yes, the 50-day moving average line has a positive slope, but this indicator could be tested and broken in the coming weeks.
The daily On-Balance-Volume (OBV) line has been down since mid-September and tells me that SFIX sellers have been more aggressive.
The MACD (Moving Average Convergence Convergence Divergence) oscillator is inverted. Now, a for-profit sales signal and perhaps soon a new direct sell signal can emerge if we go back below the zero line.
In this weekly SFIX bar chart, below, we do not have a lot of history to work on, but so far, it's bearish. Prices reversed after a recent test of the 40-week moving average line.
The weekly OBV line has been weak since September and, although the MACD oscillator has generated a cache-short buy signal, it remains below the zero line.
In this chart in SFIX points and figures, below, we can see a downward price projection of $ 21. A $ 29.81 rally is needed to make this chart bullish.
Substantive strategy: I do not know at all which figures SFIX will report tonight, but the charts suggest that traders have taken a bearish stance.
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