Big Gainer at the Opening Bell: Tapestry

Tapestry appears to be rising as a result of analyst upgrades.

Charts (1)

On Wednesday morning, Tapestry (TPR), a designer of clothing and luxury leather products gapped up approximately 6.0% before continuing to advance. Before market open, the company was upgraded to "buy" from "hold" at Deutsche Bank.  

Looking at a daily chart, Tapestry's stock price has been rising rapidly since Thursday, September 10th, after the company was initiated with a recommendation of "outperform" at Exane. The RSI is bullish and has entered overbought territory sitting at roughly 73. Price has also just made an intraday cross above the 200-day simple moving average (SMA), which is a positive signal. If price can close above the 200-day SMA, it will be an even stronger bullish signal. Price appears to be headed to retest the $20.25 resistance level. If the momentum continues it will likely penetrate that level and advance towards the $22.00 resistance level. On the other hand, since the RSI is in overbought territory, we could see a sell off that brings price back around its $16.00 support level. Price will likely find support at $16.00 and bounce. If price fails to bounce, we could watch price break down further to $14.25. If price cannot rebound off of $14.25 it would be a bearish signal that could send price tumbling lower.             

Source: GAIN Capital, TradingView

Build your confidence risk free

More from Technical Analysis

Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.