Will Crocs Inc breakout?

Crocs Inc (NASDAQ:CROX) was identified as a Technical Breakout Setup Pattern by our stockscreener. Such a pattern occurs when we see a pause in a strong uptrend: after a strong rise the stock is consolidating a bit and at some point the trend may be continued. Whether this actually happens can not be predicted of course, but it may be a good idea to keep and eye on NASDAQ:CROX.

Technical analysis of NASDAQ:CROX

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

Taking everything into account, CROX scores 10 out of 10 in our technical rating. This is due to a consistent performance in both the short and longer term time frames. Also compared to the overall market, CROX is showing a nice and steady performance.

• Both the short term and long term trends are positive. This is a very positive sign.
• When comparing the yearly performance of all stocks, we notice that CROX is one of the better performing stocks in the market, outperforming 96% of all stocks. On top of that, CROX also shows a nice and consistent pattern of rising prices.
• CROX is one of the better performing stocks in the Textiles, Apparel & Luxury Goods industry, it outperforms 95% of 48 stocks in the same industry.
• CROX is currently trading near its 52 week high, which is a good sign. The S&P500 Index however is also trading near new highs, which makes the performance in line with the market.
• In the last month CROX has a been trading in the 132.60 - 147.76 range, which is quite wide. It is currently trading near the high of this range.

Looking at the Setup

Next to the Technical Rating, the Setup Rating of a stock determines to which extend the stock is consolidating. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. For NASDAQ:CROX this score is currently 8:

CROX has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 146.59. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 142.29, a stop order could be placed below this zone. We notice that large players showed an interest for CROX in the last couple of days, which is a good sign.

Trading setups like NASDAQ:CROX

For a potential trade one would typically wait until the stock breaks out of the consolidation zone to enter the stock and it could be sold again for a loss when it would fall back below the zone.

Of course, there are many ways to trade or not trade NASDAQ:CROX and this article should in no way be interpreted as trading advice. The article is purely based on an automated technical analysis and just points out the technical observations. Always make your own analysis and trade at your own responsibility.

More breakout setups can be found in our Breakout analyzer.