Luxury fashion holding company Tapestry is the parent company of three major brands - Coach New York, Kate Spade New York and Stuart Weitzman. Let's check out the charts and indicators.
In this daily bar chart of (TPR) , below, I can see that prices rallied from late September to a high in early January. Prices then corrected to the downside for the next 4.5 months with a recent test of the rising 200-day moving average line. TPR has rallied off the key moving average line and is back above the 50-day moving average line. The trading volume decreased from February as prices corrected lower.
The On-Balance-Volume (OBV) line shows a decline from February but also shows some recent improvement. The Moving Average Convergence Divergence (MACD) oscillator has turned upwards and is not far below the zero line.
In this weekly Japanese candlestick chart of TPR, below, I can see two lower shadows at the end of April and the beginning of May. This tells me that traders rejected the lows right around the intersection of the 40-week moving average line.
The weekly OBV line made a new high in January before a correction. The MACD oscillator is above the zero line and looks poised for a fresh outright buy signal.
In this daily Point and Figure chart of TPR, below, I can see a potential upside price target in the $54 area.
In this weekly Point and Figure chart of TPR, below, I can see that prices have reached a downside price target in the $39 area.
Bottom line strategy: It looks like the recent strength in the share price of TPR is the start of a new uptrend. Traders could go long TPR on a dip below $42. Risk to $38. $54 is the first price target.
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.
