Don't Ignore This Chart!

Is GOOS About To Lay Another Golden Egg?

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Buying retail at this time of year is tricky, but Canada Goose (GOOS) is sitting at an inflection point on the chart.

Over the last couple of weeks, the stock has moved through a downtrend in relative strength (shown on the purple area chart) and sits just below the three-month horizontal green line. The weekly full stochastic is trying to turn up above 50; after having been below for a while, it may now be pointing to a trend change for a swing trade. Price has broken the six-month downtrend following a move above the 10-week moving average. If it can move above $54.06, that would put it above the 40-week moving average. On this weekly chart, the price is making a series of higher highs and higher lows, which is a bullish trait. Additionally, the downtrend on the PPO is breaking this week right near the zero line. If this really is going to start moving higher, this would be an excellent clue from the PPO momentum indicator that the trend is changing. 

With the pullback in Canada Goose, this chart looks like a consolidation within the uptrend. While the swings were very wide, this is a nice place to consider the stock for a new trade. A stop below last week's low should give the price room to work.

Good trading,

Greg Schnell, CMT, MFTA
Senior Technical Analyst, StockCharts.com
Author, Stock Charts For Dummies


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Announcement from the Author

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Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the Market Technicians Association (MTA) and the International Federation of Technical Analysts (IFTA).

Greg is also the co-author of Stock Charts for Dummies (Wiley, 2018). Greg joined StockCharts.com in 2012 and has be instrumental in helping launch a variety of new blogs and other commentary platforms. Presently, Greg contributes market analysis commentary to The Canadian Technician, Commodities Countdown and Don't Ignore This Chart blogs. Learn More
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