TPR finds buyers around 13.48 for the forth day in a row
Coach Inc. (TPR) Technical Analysis Report for Jul 28, 2020 | by Techniquant Editorial Team
TPR finished Tuesday at 13.51 losing $0.14 (-1.03%), slightly underperforming the S&P 500 (-0.65%). Trading $0.34 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 previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (TPR as at Jul 28, 2020):
Tuesday's trading range has been $0.45 (3.31%), that's far below the last trading month's daily average range of $0.64. 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. Prices continued to consolidate within a tight trading range between 13.30 and 14.35 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Shooting Star.
The market was bought again around 13.48 after having seen lows at 13.40, 13.42 and 13.48 in the last three trading sessions. Obviously there is something going on at that level. The last time this happened on July 6th, TPR actually lost -4.02% on the following trading day.
While 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 13.40 where further sell stops might get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior three Lows" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Coach. Out of 25 times, TPR closed lower 56.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after two trading days, showing a win rate of 60.00% with an average market move of 0.58%.