We reviewed Tiffany and Co. (TIF) back in December, writing, "Aggressive traders could buy TIF at current levels and add on strength above $99 looking for a rally to the $110-$115 area. Risk a close below $91 for now."
Traders acting on that analysis should be sitting pretty with sizable gains now. Heck, now you can even afford to shop in the flagship store in New York City. Let's check the charts and little blue boxes again this morning.
(For more on Tiffany and what the company is doing right, see Jim Cramer's Dick's Sporting Goods Has the Winning Game Plan for Retailers.)
In the updated daily bar chart of TIF, below, we can see the steady uptrend from last June into this May. Prices exploded on the upside earlier this month with a big gap and very impressive volume. Prices are so far above the rising 50-day and 200-day moving averages they are nearly meaningless.
The daily On-Balance-Volume (OBV) line has a positive slope from September and a faster pace on the upside from early April where buyers became even more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is very bullish.
In the weekly bar chart of TIF, below, we went back five years instead of our normal three years to show how important the move above $110 was. Prices are above the rising 40-week moving average line.
The weekly OBV line shows movement up and down with prices and a move up to new highs would be welcomed. The weekly MACD oscillator has been bullish since late 2016.
In this Point and Figure chart of TIF, below, we can see a long-term bullish price target of $210. A period of sideways consolidation is in order, in my opinion.
Bottom line: All the charts and indicators on TIF point to still higher prices in the months ahead. In the short run some sideways price movement would be expected and welcomed. Continue to hold longs risking to $115 now.