Andrea Kramer (akramer@sir-inc.com) Both Deckers Outdoor Corporation (DECK) and NIKE, Inc. (NKE) have tagged new all-time highs today, as the shoe stocks extend Tuesday's halo lift. More specifically, sector peer Brown Shoe Co. (BWS) yesterday reported stronger-than-expected third-quarter earnings and issued solid fourth-quarter guidance, spurring optimism among the footwear industry.
After rallying as high as $71.13 earlier in the session, the shares of DECK are now flirting with the $71 level ? a gain of 2.7% from yesterday's close. From a longer-term perspective, the equity has been on fire lately, tacking on more than 22% since the start of the month, thanks to the double-barreled support of its ascending 10-day and 20-day moving averages. What's more, the stock has bested the broader S&P 500 Index (SPX) by more than 41% during the past 60 sessions, and now boasts a year-to-date advance of more than 100%.
In similar fashion, the shares of NKE skyrocketed as high as $86.97 in early trading, and are now lingering in the $86.74 area ? a surplus of 1.7% from yesterday's close. Furthermore, after springboarding off its 10-week moving average, the security is now up more than 6.5% for the month, and has outpaced the SPX by 8.3% during the past 60 sessions.
However, aside from their fundamental similarities and quest for new highs, DECK and NKE have something else in common: a lofty Relative Strength Index (RSI). More specifically, in the wake of their technical accomplishments of late, DECK and NKE now harbor RSI readings of 76 and 67, respectively ? meaning a correction could be in the cards for the footwear concerns.
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