Bulls Flying the Middle Seat in Coach

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It appears as though the recent strength in Coach was nothing more than a bull trap before today’s disastrous sell-off after poor earnings. We can always look at these sell-offs in a vacuum, though, which forces us to look at the bigger picture.

As you can see on the updated weekly chart below, the move above $60 was short-lived out of the recent multi-month consolidation. A head and shoulders top going back to 2011 could also be made. Downside follow-through after this sell-off would be devastating to bulls here.

When you combine those technicals with brand maturity and increased competition, Coach is still likely a short setup into any rally.

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Previous Posts by chessNwine

Bulls Flying the Middle Seat in Coach

381 views

It appears as though the recent strength in Coach was nothing more than a bull trap before today’s disastrous sell-off after poor earnings. We can always look at these sell-offs in a vacuum, though, which forces us to look at the bigger picture.

As you can see on the updated weekly chart below, the move above $60 was short-lived out of the recent multi-month consolidation. A head and shoulders top going back to 2011 could also be made. Downside follow-through after this sell-off would be devastating to bulls here.

When you combine those technicals with brand maturity and increased competition, Coach is still likely a short setup into any rally.

_________________________________

Comments are closed.