The charts and indicators on Coach (COH) were bearish before today's downgrades by fundamental analysts. The downgrades may be late, but the downside doesn't look like it is over just yet.
Before last Friday's equity meltdown and today's downgrades, COH was giving signs of trouble -- the daily chart above. In early August, COH closed below its 50-day simple moving average line. The On-Balance-Volume line peaked at the beginning of August as we saw volume increase on days when COH closed lower. Heavier volume on down days is a sign that traders and investors are anxious to get out of a stock. In addition, the Moving Average Convergence Divergence (MACD) oscillator gave a liquidate-longs sell signal at the beginning of August and an outright sell signal by the middle of the month as it moved below the zero line. Last Thursday, COH closed below the rising 200-day moving average line. The handwriting was on the pocketbook.
In this weekly chart of COH, above, we get some more clues about where COH is headed. The July rally toward $44 failed like the rally in the first quarter of 2015 in the same price area. COH has closed below the rising 40-week moving average line. The weekly OBV line has been uninspiring the past year and tells me buyers have not been aggressive in purchasing this stock. Last, the MACD oscillator gave a weekly liquidate-longs sell signal in early August. I would look for COH to retest the $32 area in the days and weeks ahead.