The 4 Stages

During my normal weekend review, I came across several stocks that looked like good examples of a stock going through stage 4. For a brief and simplistic chart on what the stages look like, I bring you this courtesy of Craig Ferguson:

To see this applied to a recent chart of a stock, let’s take a look at the Weekly chart of DECK:

The stock completed Stage 3 in December 2011 and has been drifting down since in a Stage 4 move. The 200 day simple moving average is coming up from below and will likely provide a nice test when it meets up with price.

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