SKUL has been doing alright; only up 10.1083% since earnings on Thursday and it might be setting up to breakout, but a lot of resistance are at the pre-breakout levels. Be that as it may, there are still around 10-11M shares short this stock with an avg analyst target price of $22. So let’s take a look at the anatomy of SKULnation.
I like how it broke out from the descending trendline with strong volume; this makes it a tasty swing trade set up for me. I also drew a fib retracement level (not a professional, so if you know how to draw it better than me, plz let me know) to make potential resistance and support.
Today was an OK day but not strong enough because the bears are still defending pre-breakout levels– too much supply:
I took this screen cap at EOD and this was the most volume that would not let the bids pass, and I posted a picture earlier showing that .25-.30 had huge resistance.
Now we take a look at the options contract:
The calls just keep on going up since earnings with strong volume each day; I think it will get more volatile when the options start to expire in two weeks.
I think if the bulls really WANT that short-squeeze, they might need to need to step it up and take out the supply by hitting the ask to keep pushing this stock higher b/c otherwise, it could lose the upside momentum and start to stall and get stuck in a channel doing some sideways trading ’till the next earnings.
Stocktwits usually doesn’t do this, but they gave SKUL a shout out today:
Nice rally for Skullcandy today and its ticker is starting to trend on StockTwits: stks.co/h3Gp
$SKUL— Stocktwits (@StockTwits) August 6, 2012
Now that more people will know about SKUL b/c it is trending on social media, and crazy bat shit things can happen just like the Fake Tweets about Syrian president Assad’s death cause all too real spike in crude and s&p.
