We reviewed the charts of Coach (COH) earlier this month, where we said, "The price of COH might edge lower to around $45, but the overall chart picture is positive. Investors should continue to hold longs, as we still look for our $55 price target to be reached. A close below $43 would prompt a reappraisal."
Yesterday COH plunged below $43, our risk point, so here we are with an update.
In this updated daily bar chart of COH, below, we can see how prices gaped lower on heavy volume. The 50-day moving average line is now bearish and the rising 200-day line is being tested. The On-Balance-Volume (OBV) line turned lower and downside momentum is weak.
In this weekly chart, below, we don't see the gap but we see the slide down towards support in the $40-$38 area. Prices are testing the 40-week moving average line. The weekly OBV line is turning down and the MACD oscillator has crossed to a take profits sell signal.
This Point and Figure chart, below, shows a bearish downside price target of $33 but it also shows a lot of support below $38.
Bottom line -- the gap on COH has turned the chart bearish and it will likely take a period of time to repair the damage. Meanwhile, prices could weaken still further at least to $38 and maybe a little lower.