Long, Depressing Summer Ahead For Coach(COH)
Posted by barkand on April 1, 2011 under Classic chart patterns | 
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With the start of baseball season in the US, we decided to evaluate the chart for Coach(COH). Now, Coach actually has no connection to baseball whatsoever aside from the fact that they sell leather goods and baseball players use leather gloves. However, like some baseball teams, we feel that Coach is facing a long and painful summer.
It seems to us that Coach has alot of things working against it:
- Having reached its present price of $52 from below, COH has reached a point that has been both support and resistance in the recent past.
- The 20-day moving average is just overhead and falling fast. This will provide still more resistance.
- The recent rebound from $50 to $52 was on low volume. The bullish troops are not enthusiastic about returning to battle after the hasty retreat from $55.
We forsee COH eventually settling in to the area from $45-47, or lower by 10% or more from here. This is the gap from last autumn. When (or “if”) it reaches that point we would re-evaluate the situation and see if there is any reason to be a buyer.