Coach, Inc. (COH) appears to have left the station in reaction to this morning's earnings report as well as perhaps news that the company is no longer interested in acquiring Kate Spade & Company (KATE).
That said, a very big picture view of COH shows today's up-spike has propelled the price structure towards completion of a massive 3-year accumulation/base formation that will trigger much higher potential if the price structure climbs and sustains above 43.70/90.
Should such a signal emerge, COH will face serious technical challenges trying to get to the "promised land target zones of 54-55, and then to 60-61.
There is heavy resistance along the way, which only will be overcome, if 1) the economy begins to accelerate beyond 1% growth, 2) the retail environment improves, and 3) anticipated forthcoming quarterly earnings momentum resumes an upward trajectory.
If the developing, maturing base pattern means anything, then all of the above-mentioned conditions should be present and driving the share price higher in the upcoming weeks and months.