Clothing Giant Faces Off With 2 Key Trendlines

Shares of VF Corp (VFC) have struggled on the charts, but from a technical point of view, there seems to be two clear culprits of its recent bout of bad luck. A surefire contributor to the equity’s 28% year-to-date deficit, the $20 mark moved in as a ceiling in mid-May. In fact, this level of resistance once acted as support for the security. The stock is also facing off with a historically bearish trendline, suggesting now may be the ideal time to buy more puts on VFC.

VF Corp stock is running into its 50-day moving average. Per Schaeffer’s Senior Quantitative Analyst Rocky White’s last study, the stock saw seven similar signals in the past three years. One month later the stock was lower 57% of the time, averaging a 2.8% loss. Last seen trading flat at $19.59, a move of similar magnitude would send VFC back toward its early June lows.