Tapestry, Inc. (TPR) was reviewed in early February, noting that, "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." Prices have gained in the past two months but they have yet to reach our mid-$70's target, however, a fresh look is in order as momentum has slowed.
In this updated daily bar chart of TPR, below, we can see that prices are above the rising 50-day moving average line but the line is close and a small pullback could break it. The 200-day moving average line is still bullish and comfortably below the market.
The daily On-Balance-Volume (OBV) line has been neutral the past five weeks. In the lower panel is the 12-day momentum study which shows a lower reading from February to March to April. This is a bearish divergence when compared to prices which have made higher highs. A bearish divergence can foreshadow a turn lower.
In this weekly bar chart of TPR, below, we can see that prices are above the rising 40-week moving average line but TPR made a large outside week bar or a bar where the high and low of the previous week is exceeded. An outside with a lower close or weakness in the subsequent week can be a near reversal.
The weekly OBV line has weakened recently and the Moving Average Convergence Divergence (MACD) oscillator has narrowed.
In this Point and Figure chart of TPR, below, we can see that prices are in a strong uptrend with $75 as a possible upside price target or objective.
Bottom line: TPR is still pointed up but with some of indicators slowing, we want to be cautious going forward. I would suggest a sell stop below $50 now.