TPR still stuck within tight trading range
Coach Inc. (TPR) Technical Analysis Report for Jul 13, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, TPR ended Monday at 12.90 gaining $0.28 (2.22%), significantly outperforming the S&P 500 (-0.94%). 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 Jul 13, 2020):
Monday's trading range has been $0.81 (6.38%), that's above the last trading month's daily average range of $0.69. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for TPR. Prices continued to consolidate within a tight trading range between 12.16 and 13.25 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on June 30th, TPR actually lost -2.33% on the following trading day.
Though the stock is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Selling could speed up should prices move below the close-by swing low at 12.16 where further sell stops might get activated. As prices are trading close to July's high at 13.94, upside momentum could accelerate should the share mark new highs for the month. Trading close to May's low at 11.51 we might see further downside momentum if potential sell stops at the level get triggered.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Coach. Out of 326 times, TPR closed higher 54.60% of the time on the next trading day after the market condition occurred.