Coach (COH) has been a beaten up premium retailer the last few years. Today marks an interesting change in trend for the retailer. The SCTR has been above 75 all year, but today marks a break in the stock above previous resistance to a new 2-year high. The yield is healthy at 3.1% and Coach has set up a nice basing pattern.
With the MACD above zero then pulling back, a new positive cross today looks like a bullish breakout. Retail stocks can break out as early as July and run up into the fall and Christmas season. It looks like Coach is taking the opportunity to leave the station. All Aboard! The stop should be just below the breakout at $40.50.
Greg Schnell, CMT , MFTA.