SKX has trended above it's 200 day moving average since 11 Nov 2022 and began to consolidate in a mini cup pattern ("handle" if we look at the monthly timeframe) for the last 3 months. It has just broken above this mini cup neckline @ 49 strongly after earnings beat and is now heading towards a more significant neckline (54 - 56 zone). If it is able to break and stay above this major neckline, then there is room to go higher as it begin a new up trend.
Ideally we would like to see a minor pullback shortly after the breakup to retest and affirm that the neckline has become the new support. However this may or may not happen and we should manage the trade with trailing stops (usually placed at near term pivot lows, gap fill or some fib levels).
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management (ie postion sizing, stop loss etc) is important! Take care and Good Luck!
Ideally we would like to see a minor pullback shortly after the breakup to retest and affirm that the neckline has become the new support. However this may or may not happen and we should manage the trade with trailing stops (usually placed at near term pivot lows, gap fill or some fib levels).
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management (ie postion sizing, stop loss etc) is important! Take care and Good Luck!