CROX, Crocs Inc

Today Wallstrip looks at CROX, the makers of the ugly rubber/foam shoes. Like others before, CROX is obviously a fad. That does not mean the growth on the price is not real it just means to be really careful and watch for reversal on the trend. This price could be very sensitive to any form of bad news.

Here is a year of daily data for CROX:

Crocs Inc. has seen really nice growth in the past couple of months. After a shacky start following the IPO in April, an uptrend started in June and intensified mid-August.

Right now, the trend has started to show signs of weakness. October has looked more like range trading, the volume has consistently dropped from the peaks mid-trend and even the MACD curve is showing a little weakness.

Do not get me wrong, this is not time to short (yet) but maybe not the best time to get in on the trend. Someone looking for short term trading could look for setups between the support at 36 and the resistance at 40. The price may bounce between these channels a little bit.