Tapestry Inc. (TPR) (Coach's parent) made a new closing high yesterday. Let's take a look at the technical picture to see if the current strength can be sustained and what sort of strategy makes sense.
In this daily bar chart of TPR, below, we can see some upside gaps and a significant downside gap. We can see an uptrend from February to July and a new base from August through November. Prices have recouped their August/September losses and have now broken above the July zenith.
TPR is trading above the rising 50-day moving average line and the rising 200-day line too. Last month the 50-day average crossed above the 200-day line for a bullish "golden cross."
This buy signal is late by definition and typically only works well when there is a lasting uptrend. The On-Balance-Volume (OBV) line turned positive in August and has risen into January. I would want to the OBV line make a new high soon to confirm the new price highs.
The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line since early November and could soon cross to the upside again for a fresh outright buy signal.
In this weekly bar chart of TPR, below, we can see that prices have been in and uptrend from a low set in September 2015. TPR is trading above the rising 40-week moving average line.
The weekly OBV line has been strong since early 2017 and tells us that buyers of TPR have been accumulating longs and have been more aggressive buyers in the weeks when prices have closed higher. The weekly MACD oscillator gave a cover shorts buy signal in November and an outright go long signal in December when it crossed above the zero line.
In this longer-term Point and Figure chart of TPR, below, we fill in the price gaps, ignore the small jiggles and the volume. The recent trade up to $49 was a "triple top breakout" and opened the way for a possible $76 price target.
Bottom line -- aggressive traders could go long TPR here and on any small dip towards $48.75. Risk a close below $46 looking for gains to the mid-$70's.