We can see on the weekly chart of FOSL that the stock is set up in a classic head and shoulders formation with the huge-volume price break forming the head in the pattern and the right shoulder holding below the left shoulder, resulting in a descending "tilt" and neckline to this H&S formation.
If the stock breaks the 40-week/200-dma on volume and closes below that key moving average line, then we might consider using the 40-week/200-dma as a tighter stop, although the high of today would seem to give it sufficient room.
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