Tiffany and Co. (TIF) . You can't miss those iconic robin's egg blue bags and boxes as you walk around Manhattan. A gift from Tiffany is always welcomed, no matter how small. My wife and I have had Tiffany credit cards for the past 43 years. I am not bragging or trying to impress. The credit card was one of few things I could afford to give my wife when we were first married. Enough about the retailer. How about the stock?
In this daily bar chart of TIF, below, we can see a nine-month sideways consolidation pattern. Since August, prices have been testing the rising 200-day moving average line but the price action and indicators turned more positive in the past six weeks or so. Right now TIF is above both the rising 50-day average and the rising 200-day average. The daily On-Balance-Volume (OBV) line has make new highs in recent weeks but it has been on a positive trend since January, telling us that buyers of TIF have been more aggressive. At the end of November volume increased an prices briefly broke out to the upside.
In this weekly bar chart of TIF, below, we can see that prices are trying to push out to new highs. TIF is above the rising 40-week moving average line. The weekly OBV line is not as bullish looking as the daily line but it looks to be turning in the right direction. The weekly Moving Average Convergence Divergence (MACD) oscillator is above the zero line (bullish) and is poised to turn up for a fresh, outright go long signal.
In this Point and Figure chart of TIF, below, we can see a breakout at $97.41 and then a pullback. Gains to $99.37 should refresh the uptrend and there is a $113.35 price target.
Bottom line: You can get a Tiffany credit card. You can have breakfast or lunch now at their flagship store. You can go long the stock. 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.
