TPR breaks back below 20-day moving average
Coach Inc. (TPR) Technical Analysis Report for Jul 30, 2020 | by Techniquant Editorial Team
TPR ended Thursday at 13.30 losing $0.57 (-4.11%), significantly underperforming the S&P 500 (-0.38%).
Daily Candlestick Chart (TPR as at Jul 30, 2020):
Thursday's trading range has been $0.61 (4.49%), that's slightly below the last trading month's daily average range of $0.63. 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.
After trading down to 13.05 earlier during the day, the stock bounced off the key technical support level at 13.25 (S1). The failure to close below the support could increase that levels significance as support going forward. Coach closed back below the 20-day moving average at 13.33 for the first time since July 20th. When this moving average was crossed below the last time on July 20th, TPR actually gained 4.04% on the following trading day.
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
As prices are trading close to July's low at 12.16, downside momentum might accelerate should the share mark new lows for the month.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for Coach. Out of 410 times, TPR closed higher 58.78% 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 two trading days, showing a win rate of 55.61% with an average market move of 0.37%.