Early in Friday's Mad Money program, Jim Cramer looked at the stocks due to report earnings. He noted that on Tuesday we get earnings from Tiffany & Co. ( TIF) and said Tiffany is hostage to the strong dollar.
Let's check on the charts of TIF as we already looked at the Dollar Index last week, and I think it can weaken in the weeks ahead.
In the daily bar chart of TIF, below, we can see the stock turned lower from late July and made a low with the broader market in late December. Prices rallied back about $35 but then stalled in April and weakened in May. Both the 50-day and the 200-day moving averages now have negative or bearish slopes and tell us that, mathematically, the trend is down.
The daily On-Balance-Volume (OBV) line has turned lower in May, and the Moving Average Convergence Divergence (MACD) oscillator moved below the zero line last month for an outright sell signal.
In the weekly bar chart of TIF, below, we can see that prices broke key support around $90 from 2017 and early 2018. A rebound rally failed around the declining 40-week moving average line.
The weekly OBV line is weakening now after a rebound, and the weekly MACD oscillator is crossing to a new outright sell signal.
In this point and figure chart of TIF, below, we can see that prices have reached a downside price target. We can also see, by looking at the volume by price bars on the left scale, there isn't that much support below the market.
Bottom-line strategy: TIF has reached a downside price target, but it is still in a downtrend, without much support below the market. A weaker dollar is my call for the weeks ahead, but I am not that sure it will do much for TIF in a weak overall market.
