Coach Shaping Up as a Low-Risk Buy
Coach (COH) is headed for a retest of its 2012 lows. The stock is off more than 2.5% at midday, and has fallen below the $49 level. This weak action is the fourth negative day in a row for the specialty retailer, and extends the stock's ugly late-January breakdown. Including Monday's drop, Coach is now down more than 20% from its pre-earnings close on Jan. 22. With a test of last year's $48.20 low close at hand, Coach is becoming oversold and may be preparing for a rebound.Coach (COH) -- Daily Source: TradeStation View Chart » View in New Window »
I am nibbling on the stock Monday, having opened a small long position near $49. As the stock continues to fade, I expect the $48 area to be hit soon. If it can stabilize near the 2012 lows, I will add to positions, as I believe this is a solid support zone. With selling pressure tapering a bit and an oversold condition developing, Coach currently looks like a low-risk buy....59 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.
Already a Subscriber? Please login.