Coach, Kate Spade Holding Company Poised for Decline
The stock price of multinational fashion holding company Tapestry looks like it could see a decline.
You've reached your free article limit
You've read 0 of 1 free Pro articles.
Tapestry TPR is a multinational fashion holding company. It is based in New York City and is the parent company of three major brands: Coach New York, Kate Spade New York and Stuart Weitzman. Despite owning these well known brands, the stock price looks like it could suffer a decline from current levels. Let's check it out.
In this daily bar chart of TPR below, I can see that prices have declined from highs in March. Prices are trading below the 50-day moving average line and just above the 200-day line. The daily On-Balance-Volume (OBV) line is pointed lower and the Moving Average Convergence Divergence (MACD) oscillator is below the zero line. The sum of these conditions suggest that prices could test and break the 200-day line.
In this weekly Japanese candlestick chart of TPR below, I see the potential for further declines. Prices are testing the 40-week moving average line but I have my doubts that prices will hold. The weekly OBV line has been weak since February. The MACD oscillator has been correcting and is close to the zero line.
In this daily Point and Figure chart of TPR below, I can see a downside price target in the $35 area.
In this weekly Point and Figure chart of TPR below, I can see the same $35 price target as shown on the daily chart above.
Bottom line strategy: Shares of TPR could decline in the weeks ahead. Avoid the long side of TPR.
Employees of TheStreet are prohibited from trading individual securities.