Amid yesterday's tech rally, SFIX opened the session gapping down about 24% after reporting a surprise Q2 loss and lowered full-year guidance.
Notably, this drop sets the focus on the previous all-time high of $52.44 set in 2018. During the first minutes, the shares tried to break above this watermark, but ended up closing the session below $50.
In the near term, it will be interesting to see if bears succeed in pushing the shares below the yearly pivot point (PY, $47.28). Apparently, this level was appreciated during yesterday's session. This breakdown will support bearish sentiment and put the 200-day moving average in play as possible support. Further decline might eventually lead to a gap fill at $35. This would drag the share price down about 27% from yesterday's closing price. However, after an overall 57% fall from the all-time high set in January, such a sustained downside move does not seem too unlikely.
On the upside, I’ll be watching to see if SFIX succeeds in breaking the 2018 high of $52.44. A crossing above this level would signal a possible return in bullish sentiment. This will bring the $60 zone with the 100-day moving average as resistance on the way towards the potential gap fill at $67.
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After consolidating between the PY pivot and the 2018 high for a few days, SFIX has broken out of that range and has the chance to test the 100-day moving average / the SM2 pivot level.