Has COH Left the Station?
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.