Tiffany (TIF) shares spent all of 2015 making a steady series of lower highs and lower lows, losing 40% of their value in the process. This year they have stabilized, forming a base.
The stock now looks prepared to break out and begin moving higher.
The weekly chart shows last year's downtrend followed by the horizontal channel consolidation that has been underway since the beginning of the year. In September, the stock broke above the downtrend line and began trading in a narrowing range at the top end of the channel.
Monday's rally saw shares gap above channel resistance and close up near their highs, but the technical indications were positive going into the session. Weekly moving average convergence/divergence made a bullish crossover after the July test of the channel low and has moved above its center line, and Chaikin money flow moved above its center line in July, and has continued to track higher.
These indications reflect positive price momentum and strong buying interest.