PVH...standing on the precipice

As the broad market continues to act shaky there will be an increase in the number of stocks that break technical support...some well defined areas like major moving averages (as in this post from IBM yesterday) while others may be less textbook.

One such example that jumped onto my radar today was PVH. The stock has been flirting with its 200day moving average since May and continues to be in a bear flag. Although the 200day has been successfully defended so far with breaches below not lasting for more than 2 days, this type of activity needs to be monitored closely - especially since this is in a discretionary sector. A high volume close below, especially if sustained for more than 2 days, will likely lead to much lower prices. Look for first support to be ~$70 with much stronger support ~$65.