Looking at weekly chart of Blue Nile is like looking at large slide. The stock just keeps dropping. Technically it keeps rallying into sell-offs and then when you think it found support it just drops through the floor.
The numbers aren't much better for NILE. Its sales growth rate over the last 3 years has been pretty tepid at 6.5% range and earnings this quarter are down year of year 61% from last year. So with little fundementally good about the stock and the technicals pointing the same way its best to say that this stock one to avoid.