This is strictly a technical pattern highlight on a stock that I’d not usually even look at, luxury retailer COH. The stock is getting hammered today (down over 12%) on a profit beat but revenues just shy of consensus.
Here is a monthly chart, which is all we need in order to gauge the parameters. The stock has dropped down into the neckline of an Inverted H&S pattern. That neckline is also clearly defined long-term lateral support going back to 2010. The green shaded ovals represent a big picture series of higher highs and higher lows; in other words, a strong bull market in the stock. Technically speaking, it is reasonable to think that the Head (H) to this pattern was the 2nd higher low.
Monthly RSI is stair-stepping higher and still looks intact. Risk should be managed below 40.
A reminder that chart based NFTRH+ updates are technical trade setup ideas, which may not be revisited as the buy, sell, stop parameters are already noted. They are meant as a starting point for further research if interested. I will not personally buy every item highlighted and will sometimes sell – without prior notice (because this takes time and resource away from NFTRH’s main functions) – any item that I do buy, below target, which is something I often do as a trader. Also please be aware that I am not a fundamental stock analyst. Due diligence is your responsibility.