Tiffany & Co. (TIF) is trading sharply higher this morning as traders and investors react to their latest numbers. We last looked in on TIF in June, writing that "If you are long TIF from lower levels you can afford breakfast or brunch at the flagship store in NYC. You could also raise sell stop protection to $120. Look for a period of sideways price action on TIF before it heads to our longer-term price target of $212."
TIF is trading around $139-$140 this morning so we have room to rally.
In this daily bar chart of TIF, below, plotted through Monday's close, we can see that prices only dipped to $125 so our suggested $120 stop was never in trouble. With the price strength today we would raise stop protection to just under $125, the recent low.
Prices should close back above the declining 50-day moving average line. The longer-to-react 200-day average line is still pointed up.
The daily On-Balance-Volume (OBV) line has been flat for much of the past three months but strong volume and a higher close today could move the OBV line to a new high.
The trend-following Moving Average Convergence Divergence (MACD) oscillator was already narrowing so a crossover to the upside and cover shorts buy signal is very likely this week.
In this weekly bar chart of TIF, below, we have a mixed picture.
Prices are above the rising 40-week moving average line which is positive but the weekly OBV line is pointed down and suggests liquidation and selling at this juncture.
The weekly MACD oscillator crossed to the downside earlier this month for a take profits sell signal or a sell in an uptrend.
In this long-term Point and Figure chart of TIF, below, we can see that prices had reached a price target of $133. A rally to $142 will be a double top breakout and allow for higher prices like $200-$212.
Bottom line strategy: Traders and investors who are long can raise sell stop protection to just below $125, the low of the month. Strength above $142 should open the way to new highs and targets like $200 and $212 longer-term.