TPR crashes, losing $0.90 (-2.72%) within a single day on high volume
Coach Inc. (TPR) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, TPR finished the week -4.0% lower at 32.20 after tanking $0.90 (-2.72%) today on high volume, notably underperforming the S&P 500 (0.5%). This is the biggest single-day loss in over a month. The last time we've seen such an unusually strong single-day loss on February 7th, TPR actually gained 1.14% on the following trading day. Today's close at 32.20 marks the lowest recorded closing price since January 25, 2016. The bears were in full control today, moving the market lower throughout the whole session. Closing below Thursday's low at 33.00, the share confirmed its breakout through the prior session low after trading up to $0.83 below it intraday.
Daily Candlestick Chart (TPR as at Mar 15, 2019):
Friday's trading range has been $0.99 (2.99%), that's far above the last trading month's daily average range of $0.73. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for TPR.
One bearish candlestick pattern matches today's price action, the Black Candle.
Prices are trading close to the key technical support level at 32.03 (S1).
With another close below the lower Bollinger Band, prices are confirming their strong downward momentum in the short-term. A rally back into the Bollinger Band on the next trading day while might signal a potential change in momentum that could lead to a correction back up towards the center of the Bollinger Bands at 34.63.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 31.91, downside momentum might speed up should Coach break out to new lows for the year.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Coach. Out of 325 times, TPR closed higher 54.46% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 56.00% with an average market move of 0.94%.