Market Talk with Piranha is currently moving to its new home at chrisperruna.com. The new site is up and running but many of the posts need editing as the images and stock charts did not transfer successfully (thanks blogger). I will post all new entries to both blogs – Thank you for your patience while I make this change!

Thursday, January 05, 2006

Question about Coach - COH

...Today’s question comes from an MSW member that owns shares in Coach (COH), an MSW Index stock for many months. We told you that the pivot point sits at $36.94 and the triple top breakout has now setup with a move above $37. On the flip side, strong support sits at the $30 area, below the 200-day moving average. Below is what I had to say earlier in the day:

MSW Member Question:
Chris,
Well, is it time to bail on Coach? Several ugly days on volume and I am negative. Should get xmas sale results soon, either help or kill the stock.

Thanks.

My Answer:
Looking at a two year chart, the stock has held 200-d m.a. every single time (exactly where it is now). If you are personally questioning the stock and feeling uncomfortable: at least take down half of your shares. Remember, you can always get back in. If you are very uncomfortable, sell it all and reassess the situation with an unbiased approach.

Look at this way: If you didn’t own Coach, would you enter right now?

Look at the two year chart:

http://stockcharts.com/gallery/?coh

I don’t want to influence your decision either way but I know momentum traders are buying at this point due to past performance at the 200-d m.a.

Again, sell half and let it prove itself if you are worried. Good Luck with your decision.

By the way, support is $30 and breakout is $37 and yes the holiday numbers will make or break the stock near support.

Piranha

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