The USD 8 support, currently tested, should allow Skullcandy to rally again.

From a fundamental viewpoint, the company has growth perspective in a mid-term horizon. More over, the EV/Sales ratio is low at 0.69x for this year.

Technically, we can see that the last earning releases has created a huge decline of the stock near the 8 EUR support. This level is stopping the movement and thanks also to the upward trendline, Skullcandy shares are not falling much.
In daily data, even if moving averages are still in a downtrend, a positive reaction in this USD 8.02 area should stop this trend and allow a technical rebound towards USD 9.64. Moreover, technical indicators show a significant oversold condition which strengthens this bullish scenario.

The trading strategy can benefit from the proximity of the strong support currently tested in order to buy Skullcandy with a good timing. The potential gain is around 15%. Investors might place a stop loss order at USD 7.8 in order to avoid important losses.