Shares of Crocs Inc (CROX) surged yesterday after the company announced a blowout quarter and solid guidance. Today, the stock initially popped again, pushing to an all-time high of $102.85. However, quickly the stock saw major selling pressure and turned negative. This is potentially creating a topping tail on the daily chart, a major top and reversal signal. Considering CROX was under $10.00/share a year ago, a move above $100.00/share is incredible and prices the company on the very expensive side.
In addition to the topping tail, it is important for investors to remember that CROX has done amazingly well during the Covid-19 pandemic because people were working from him, thus able to wear comfortable shoes like CROX. As things open up, sales growth will slow dramatically.
As a trade, look to short CROX once the topping tail is confirmed. Look for downside to gap fill at $85.00.
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