TPR closes within previous day's range
Coach Inc. (TPR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
TPR finished the week 14.59% higher at 13.98 after losing $0.26 (-1.83%) today, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Trading $0.31 higher after the open, Coach was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (TPR as at May 22, 2020):
Friday's trading range has been $0.81 (5.65%), that's slightly below the last trading month's daily average range of $1.00. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TPR.
The share closed back below the 20-day moving average at 14.13. After having been unable to move above 14.55 in the prior session, the stock ran into sellers again around the same price level today, missing to move higher than 14.65. The last time this happened on May 15th, TPR actually gained 9.75% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
As prices are trading close to May's high at 15.58, upside momentum could accelerate should the market mark new highs for the month.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Coach. Out of 209 times, TPR closed higher 53.59% 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 59.81% with an average market move of 0.61%.