With a positive reaction to earnings, Michael Kors remains a strong chart on virtually all timeframes. Obviously, if you did not play earnings it is tough to chase the stock this morning. But turning $60 into support is the main issue I am observing to plan an entry in the coming days or weeks.
As I wrote on January 13th:
Ever since KORS IPO’d in late-2011, the chart has been far more orderly than many other popular IPO’s we have seen in this cyclical bull market. On the weekly chart below, you will note what is known as the “base over base” pattern, indicating a steady ebb and flow to the price action with an inherent bullish bias literally since the IPO–A huge move higher followed by a long, mild basing period.
According to The PPT, the firm has impressive growth, ROE, and profit margins. A bright future, indeed. I view another move above $53.50, and especially $55, as a signal for an imminent leg higher.