I posted on Kathmandu shares on 14 June when price was testing the support zone of the 200 day moving average and the trend line just below that. As things turned out, this was one that played out pretty much to script. Potential sellers got a last bite at the cherry courtesy of a neat 38.2% retracement before yesterday’s profit downgrade.
The question now before traders is how much further might Kathmandu shares fall if the weather stays warm and consumers remain cautious? Looking at Kathmandu’s chart, the $2.60 area looks a possibility. This represents a 61.8% retracement of the major rally. Depending on how quickly we got there, it would also pick up a potential long term trend line with the kind of 45 degree angle that’s typical for long run trends.
Kathmandu Shares - Daily CFD Chart