NEW YORK (TheStreet) -- Good day, traders!
1. First, let's look at Coach, the designer and marketer of bags, accessories, business cases, footwear, wearables, jewelry, sunwear, travel bags, watches and fragrances for women and men in the U.S. and internationally. Coach traded up big on Friday, gaining 5.4% to close at $36.71.
- Friday's range: $34.80 - $36.75
- 52-week range: $33.39 - $57.95
- Friday's volume: 12,093,424
- Three-month average volume: 6,626,690
Coach looks good to me as a technical trade because on Friday shares pushed over the 50-day simple moving average, and closed above recent highs, creating a higher high. Friday's move cleared near-term resistance, and looks to be heading higher. There was a bottom formed over the last couple months, as the $33.62 support level held after being tested several times.
Coach reported positive earnings on Tuesday, and has moved higher after the report. I would look to enter this trade above the 50-day simple moving average, which is at $36.06. A good entry is anywhere between $36.06 - $36.65.
I would set a stop on a close at about $35.80. I would ultimately target the 200-day simple moving average, which is at $46.53. The 200-day simple moving average is 26% to the upside from Friday's close. There are some overhead resistance levels at $38.64, $40.76, $41.33 and $45.43, so watch for consolidation at these levels, and watch for sell signals at these levels.
Overall, Coach looks like a good swing trade that could be a quick 5%, 10% or longer move with 20%-plus gain potential. Stay long until you see a sell signal, or a close below the t-line.