On June 16, 2012, we posted the following commentary on The Buckle Inc. (BKE) when the stock was trading at $36.79:
“We are very interested in this stock at the right price. We believe that BKE will be a buy at $30 and below. However, prior price movement based on Gould’s speed resistance lines indicated that the conservative downside target is $24.47 and the extreme downside target of $16.68.”
Since that time, The Buckle (BKE) managed to increase as high as $56.07 by January 12, 2015. However, since January 2015, BKE fell as low as $13.70 on August 2017, on a closing basis.
One of the fascinating elements of the work of Edson Gould is that it can be extremely accurate in spite of incomplete data. When we ran the figures for downside targets, BKE’s peak price was $48.39. The peak price is part of the equation that helps to generate the downside targets. In spite of this fact, BKE managed to decline below the extreme downside target based on the speed resistance lines (SRL).