Not in Vogue: Three Designer Brand Stocks Whose Charts Lack Je Ne Sais Quoi

We see mixed signals in the charts of Michael Kors (KORS), Coach (COH) and Kate Spade (KATE).
By Bruce Kamich ,

NEW YORK (TheStreet) -- Fashion trends can be fickle and the price charts of some of the must-have designer bag manufacturers can go from must-buy to must-avoid faster than the time it takes to read WWD. Today, we're looking at Michael Kors (KORS) Coach (COH) and Kate Spade  (KATE) .

Shares in KORS suffered this year as prices moved steadily lower with two significant gap down moves. Prices have stabilized in the past four months, but the bulls are staying away. The 50-day moving average is flat to declining. The On-Balance-Volume (OBV) line is flat and not indicating any meaningful accumulation, and a bullish divergence this summer has failed to generate much in the way of an upside move.

The chart of COH, above, is showing some promise. Similar to the chart of KORS, COH gapped down below its 50-day moving average, and a number of bounces during the decline stopped short of the falling moving average line. The OBV line is mostly flat but looks a little livelier in the past month. Unlike KORS, COH made a low in August and a retest in September. When comparing this price action to the momentum study, we can see a bullish divergence. Prices rallied the past month and are back above the 50-day average. In the weeks ahead, COH could rally back to $36 or so, retracing half of its decline.

Like KORS and COH, KATE shares have been under selling pressure and are trying to bottom. Prices started down in early May, breaking below the flat 50-day moving average but largely without the dramatic gaps. The OBV line has displayed some erratic improvement as prices swing above and below the 50-day moving average the past two months. KATE is likely to trade sideways but strength above $22 would strengthen the picture.

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