VF Corporation, the long-standing parent company of some top name retail brands such as North Face, VANS, and Wrangler, lost 10.8% of its stock value on Friday. That being said here is the analysis and my thoughts:
Analysis: As the chart shows, a strong inverse head and shoulders pattern began to take shape around 31 Jan, with a completion of its pattern on the right shoulder around 12 Feb. With a very moderate volume increase the stock was on track for a breakout, remained semi-neutral throughout, and never reached it's 5 point expected climb. It fell short by approximately 2 points (Based on candle analysis). This remained the case until it sharply declined on the open Friday pushing it well below support levels.
Thoughts: If the theory holds true about the effect of the tax code change this sudden shift just pushed the stock back 2 months to previous support levels. However, with its long-standing reputation, I'm optimistic about a return on this stock after its full year and four quarter reports from last year. (For further detail visit: www.vfc.com/news/pre...rth-quarter-and-full)
What Next: I myself will place this on my watchlist for the coming week. Overall I believe, for myself, it will turn out as a solid medium to long-term investment.
Disclaimer: This analysis is solely meant for educational purposes, not financial advice. All trade considerations based on this chart are the sole responsibility of the individual.
Analysis: As the chart shows, a strong inverse head and shoulders pattern began to take shape around 31 Jan, with a completion of its pattern on the right shoulder around 12 Feb. With a very moderate volume increase the stock was on track for a breakout, remained semi-neutral throughout, and never reached it's 5 point expected climb. It fell short by approximately 2 points (Based on candle analysis). This remained the case until it sharply declined on the open Friday pushing it well below support levels.
Thoughts: If the theory holds true about the effect of the tax code change this sudden shift just pushed the stock back 2 months to previous support levels. However, with its long-standing reputation, I'm optimistic about a return on this stock after its full year and four quarter reports from last year. (For further detail visit: www.vfc.com/news/pre...rth-quarter-and-full)
What Next: I myself will place this on my watchlist for the coming week. Overall I believe, for myself, it will turn out as a solid medium to long-term investment.
Disclaimer: This analysis is solely meant for educational purposes, not financial advice. All trade considerations based on this chart are the sole responsibility of the individual.