Analysts expect Tiffany to post earnings of 77 cents a share. The stock was trading at $103.94, up 3 cents, on Monday morning.
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A year ago, the stock rallied 16% from $81.07 on Nov. 26, 2013 to $93.64 into Jan. 2 on post-earnings momentum. On Jan.13, the luxury jeweler announced an upbeat report for 2013 holiday sales, but the good news was already priced in and the shares fell to a test of their 200-day simple moving average of $80.25 on Feb. 3, which proved to be a buying opportunity.
A strong earnings report on May 21 fueled an 8.5% gap higher from $88.23 on May 20 to $95.77 on May 21, and a momentum run-up led to an all-time intraday high at $105.66 on Aug. 27, up 20% from May 20. Investors, however, were poised to book profits, and the stock fell to $85.69 on Oct. 15.
As for trading the stock now, investors should book profits by entering a good ‘til canceled limit order to sell on strength at a key technical level of $105.15 and place a sell-stop order below the stock's key weekly moving average at $98.73, keeping in mind that the average will be rising each week. If you are looking to buy Tiffany on weakness, enter a good 'til canceled limit order to buy at a key technical level of $77.85.
Here's the daily chart for Tiffany.
Courtesy of MetaStock Xenith
The daily chart for Tiffany ($103.91) shows that the stock's run-up in 2013 began when it broke out above its 200-day SMA (green line) at $60.35 on Jan. 14, 2013. The run had its ups and downs as shown, leading to the all-time intraday high at $105.66 set on Aug. 27. Then came jolts of volatility to the low at $85.69 on Oct.15, and to the high of $105.24 on Nov. 21.