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.
Good trading,
Greg Schnell, CMT , MFTA.
About the author:
Greg Schnell, CMT, MFTA is Chief Technical Analyst at Osprey Strategic specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA).
Learn More
