What a Tease

 | Apr 26, 2013 | 9:00 AM EDT  | Comments
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

kors

The weekly chart and higher degree pattern in Michael Kors Holdings (KORS) is still bullish. This is why I have been stalking the buy side in this one, and, frankly, I got caught with some "too early" entries. Even though it bounced off some higher support decisions in the past, each time, KORS was unable to sustain the rally and instead continued to test lower support zones. So I'm asking: KORS are you teasing me again, or is this where we will finally see a rally from support that has some follow-through to the upside?

Watching and getting stopped out with some of these false starts has been frustrating, but that's just part of the business. So let's take another look at the daily chart of KORS. I really liked the price activity I saw in Thursday's session.

Source: DynamicTrader

On the daily chart I am now seeing a rather wide Fibonacci price cluster zone at the $48.89-$51.59 area. Within that zone of support, a tighter zone came in at $50.91-$51.59. Note that the recent low was made at 51.63 which was just $0.04 above this cluster. Now if we finally get some follow though in this one the upside potential is rather healthy. Target No. 1 comes in at $68.23. The risk at this point can be defined below the recent low.

I would actually like to set up a pullback on an intraday chart before entering a position. You may not need much of one if you are getting involved via an options strategy using a spread. Let's take it down to a lower time frame chart and see what kind of pullback we can look for.

Source: DynamicTrader

On the 30-minute chart above, I have identified two standout areas for a pullback entry. The first one comes in at $54.80-$55.43. The second comes in at $53.67-$54.30. Keep in mind that if it makes a new high first beyond $56.98, I will have to recalculate the support decision. If I see that, I will more than likely post some new zones in the Columnist Conversation section of the site. Hopefully, this time we will see some follow-through. Stop teasing me, Kors!

Columnist Conversations

There were nice reversal-type candles on the weekly charts of the major indices. The DOW and the S&P forme...
A number of stocks on my watch lists are attempting to form positive candles a key support levels. I noted th...
Lang:
While last week was a day to pull the plug and contemplate where the market was headed, I waited for some conf...
Shares of TSLA have formed multiple hammer candles at a key level of support defined by: the September head an...

BEST IDEAS

REAL MONEY'S BEST IDEAS

Columnist Tweets

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.