On a day like today, some bears can take solace in the persistent weakness of a few notable retails stocks. Coach is a stock that has been a regular short idea of mine for subscribers. The weekly chart below indicates on the top pane that, unlike previous times when the RSI lost 50, this time around bulls are having a very difficult time recapturing it. This often signals a major inflection point, especially if Coach breaks down below $54 once again. Also note the potential head and shoulders topping pattern on price going back to 2011.
I’d wait for the breakdown to trigger, though, before showing any type of aggression here, given that bears harping on weak retail stocks today likely are suffering from wounded pride and are grasping for straws. Let it play out a bit more first…
