Crocs starting to show signs of life again and resistance may give way

Crocs (NASDAQ:CROX) – This stock is starting to show signs of life again. Besides an interesting top-line growth story on the back of turning the company into an actual shoe manufacturer, the chart has stabilized.
After falling off a cliff in October 2011, the stock stabilized and found support in the $14-$16 range. CROX then put in a breakaway gap on Jan. 11, which gave way to a move into the high teens/low $20 range where it has been consolidating for a couple of months. The $22.50 area has served as resistance since late March, but looks to have potential to give way to a first stop near $24 if it breaks.
A partial starter long position here with a price target at $24 and a stop at $21 looks like a good setup. The stock has a beta of 1.27 versus the S&P 500. Should the broader market bounce and retest the 2012 highs, this may allow for some alpha to be generated with the stock.
The company is scheduled to report its Q1 earnings on April 25 after the close, and as such, any long positions in the stock are subject to potential severe price movement if the news is not as expected.

Click to Enlarge