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.
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