TPR pushes through key technical resistance level
Coach Inc. (TPR) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
TPR ended Wednesday at 18.10 surging $1.26 (7.48%) on high volume, strongly outperforming the S&P 500 (-0.46%). Today's close at 18.10 marks the highest recorded closing price since March 10th.
Daily Candlestick Chart (TPR as at Sep 16, 2020):
Wednesday's trading range has been $0.88 (4.95%), that's above the last trading month's daily average range of $0.70. Weekly volatility is also higher, being way above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for TPR.
One bearish candlestick pattern matches today's price action, the Bearish Hikkake Pattern.
Buyers managed to take out the key technical resistance level at 17.79 (now S1), which is likely to act as support going forward. After spiking up to 18.59 during the day, the market found resistance at the 200-day moving average at 18.36. The last time this happened on February 4th, TPR actually gained 4.38% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 15.32.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Coach. Out of 32 times, TPR closed higher 56.25% 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 10 trading days, showing a win rate of 59.38% with an average market move of 0.67%.