Tapestry Stock Rallies on Earnings Beat: Is It Too Late for Investors to Buy?
With shares of the Kate Spade and Coach parent moving, let's look at the charts.
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Tapestry Inc. TPR, the fashion holding company for Coach New York, Kate Spade New York and Stuart Weitzman,.reported quarterly earnings Thursday. Non-GAAP EPS of $0.92 beat Wall Street estimates by $0.04 and revenue of $1.59 billion beat by $20 million.
Let's check out the charts and indicators of TPR.
In the daily bar chart of TPR, below, I can see that the shares have weakened the past five months. Prices were trading below the rising 200-day moving average line and below the declining 50-day moving average line but have rallied Thursday to challenge both of these moving trendlines.
The On-Balance-Volume (OBV) line shows weakness since late February and suggests that sellers of TPR have been more aggressive than buyers for a while now. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but poised for a cover shorts buy signal.
In this weekly Japanese candlestick chart of TPR, below, I can see a very choppy and hard-to-trade price pattern. Prices are below the 40-week moving average line at this point in time.
The weekly OBV line has been in a downward path since February. The MACD oscillator has been weakening and is just slightly above the zero line.
In this daily Point and Figure chart of TPR, below, I can see today's rally with a column of X's, Unfortunately the rally has not influenced the software enough to generate an upside price target.
In this weekly Point and Figure chart of TPR, below, I can see a downside price target in the $28 area.
Bottom line strategy: The brands that TPR owns represent quality but I will wait for the stock price to "go on sale" before getting in line at the cash register.
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