Gap and Trap in Fossil (FOSL)

Fossil's bearish trend has continued after negative earnings on Tuesday.

   

For my previous update on Fossil, please click here.

Video Transcript:

Fossil (NASDAQ:FOSL), now that was a cup and handle, no, I’m sorry, it was a gap and trap. That’s what I called it that morning, a gap and trap. Normally, I don’t get belligerently bearish, but I might have come across very matter of fact, to the point where I wrote on the chart that all of this that you see right here is what you call “Pissed off Supply.”

Now the thesis behind this was–now, keep in mind it hadn’t reported yet–at the time I was saying, if it reports and has any chance of gapping up, fade it because ain’t no way it’s going to stay up in here. And that’s exactly what happened. It gapped up –you know,because keep in mind that by the time I do the updates and this and that it hadn’t [reported] so I did the update, then it was reporting the next day – it gapped up and then closed on the lows. Today, it has now closed even lower. So, it went up to $115 and now it’s $105, so now it’s reversed on heavy volume.

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