Image Source: Unsplash
 

Hey everyone. Happy Wednesday. It’s time for our chart of the week, and this week we’re gonna be focused on retailer Tapestry; symbol is TPR. Let’s take a look at this chart. The stock has been pretty strong for the past couple of months here.

So as we see here, the low from back in April set off a nice rally of higher highs and higher lows. That is our textbook definition of an uptrend.

It’s moved so high, it moved above the February highs, which came in at about $90. And the stock has made higher highs and higher lows the past couple of days. And broke out – followed through on that big day on Thursday. On a day the markets were only half open, the stock managed to make it up to a new all time high and followed through on Monday, July 7.

Great move here on strong volume. Take a look at that over here.

We’ve been on a MACD buy signal ever since the middle of May. We came close to crossing under it in June and early July and have moved right back up.

Look at the strength in the Chaikin money flow here as well.

And also what’s very impressive is the on-balance volume, which tells you that big institutional buyers are coming in and picking up shares of Tapestry.

I know it’s difficult to buy a stock that’s making all time highs. Relative strength is up there in the 70s right now.

But I’ll tell you: In this market right now, you want to find the names that are working the best against the rest of the market. So that’s where relative strength comes in. So Tapestry certainly not shy of making new highs.

I think it’s making a run to at least $100, possibly further than that. That would be a nice 8-9% move from current levels – $92.

So we’ll see what happens. Take a look at Tapestry; TPR is the symbol.

Video Length: 00:01:56

More By This Author:

How To Measure Market Momentum
Wynn Resorts Ltd Chart Analysis
Greed And Trading: A Tale Of Disastrous Loss