Fossil technical notes before earnings In the prior three months the shares have underperformed the broader averages with a loss of over 8%. The downtrend in the shares on a longer-term basis has been underway since shares hit a peak of price in early November 2013. That downtrend has been characterized by volatile bursts higher in price away from the broader downtrend that fail to hold. On disappointing news, a breakdown below $100 would seem highly probable. For the prior two years the $100 area has been both resistance and then support. A break below $100 would be therefore more technically significant. Support below on an increasing band of disappointment would be at $97.96, $92.80, and $89.33. If the news is more positive than expected, a move up to the recent pivot at $108.08 would be the first major resistance encountered. A breakout above $110 would turn the shares from bearish to neutral with additional resistance then at $114.12. The short-base is large at over 8% of the float short which could add to a potential short-squeeze on stronger than expected news.
Fossil downgraded to Neutral from Overweight at Piper Jaffray Piper Jaffray downgraded Fossil to Neutral saying the company's North American growth could slow further while foreign currency is a headwind with a third of its sales coming from Europe. Piper lowered its price target for shares to $104 from $133.