TPR breaks back below 50-day moving average
Coach Inc. (TPR) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, TPR finished the month -8.6% lower at 13.60 after losing $0.39 (-2.79%) today, significantly underperforming the S&P 500 (0.48%). Trading $0.44 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Tuesday, TPR actually gained 4.27% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (TPR as at May 29, 2020):
Friday's trading range has been $0.89 (6.47%), that's slightly below the last trading month's daily average range of $0.90. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TPR.
One bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Coach closed back below the 50-day moving average at 13.88 for the first time since May 20th.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Selling could accelerate should prices move below the nearby swing low at 12.58 where further sell stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Lower Closes" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Coach. Out of 324 times, TPR closed higher 56.17% 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 nine trading days, showing a win rate of 51.54% with an average market move of 0.29%.