TPR finds buyers around 12.97 for the third day in a row
Coach Inc. (TPR) Technical Analysis Report for Aug 03, 2020 | by Techniquant Editorial Team
TPR finished Monday at 13.34 edging lower $0.02 (-0.15%), underperforming the S&P 500 (0.72%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (TPR as at Aug 03, 2020):
Monday's trading range has been $0.52 (3.89%), that's below the last trading month's daily average range of $0.61. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above 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 12.97 and 13.66 where it has been caught now for the last three trading days.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Takuri Line which is known as bullish pattern and one bearish pattern, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 12.94 (S1). Coach closed back below the 20-day moving average at 13.35. The share found buyers again today around 12.97 for the third trading day in a row after having found demand at 13.05 in the previous session and at 13.05 two days ago. The last time this happened on July 28th, TPR gained 2.66% on the following trading day.
While the market is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Further selling might move prices lower should the market test July's nearby low at 12.16.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Outside Bar" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Coach. Out of 118 times, TPR closed higher 57.63% 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 three trading days, showing a win rate of 52.54% with an average market move of -0.15%.