Tapestry Inc Inverted H&S
Tapestry Inc is testing the neckline of an inverted head and should pattern with price above all MAs(8,21,34,50,100,200) and all MAs in bullish order. This indicates a bullish price trend.
The lower PPO indicator show the green PPO line rising and above the purple signal line indicating short-term bullish momentum. Both lines trending above the 0 level indicates intermediate to long-term bullish momentum.
The lower TDI indicator shows the green RSI line recently crossing and holding above the 60 level indicating a short-term bullish trend. The green RSI line is above a rising purple signal line and currently trading outside of the upper Bollinger Band. In general, you want to stay long when price is above the upper band, but caution is warranted as price tends to correct when the RSI line crossed back below the upper band. The overall trend in RSI is between the 40-80 levels which indicates intermediate to long-term bullish price trend.
Assuming that price breaks above the neckline and closes and opens near the $46 level, a measured move from the head to neckline is $7 gives us a projected target near $53.
My buy price for this trade is $44.41.
My stop-loss(SL) is at $41.11.
My max risk/loss on this trade is roughly -7.5%.
Potential gain is +15%.
On any given trade my position size is based on a max loss that can be no more than 1% of my total portfolio value which determines my trade size. I might lose -7.5% on this trade, but that loss would not exceed 1% of my total portfolio.
The lower PPO indicator show the green PPO line rising and above the purple signal line indicating short-term bullish momentum. Both lines trending above the 0 level indicates intermediate to long-term bullish momentum.
The lower TDI indicator shows the green RSI line recently crossing and holding above the 60 level indicating a short-term bullish trend. The green RSI line is above a rising purple signal line and currently trading outside of the upper Bollinger Band. In general, you want to stay long when price is above the upper band, but caution is warranted as price tends to correct when the RSI line crossed back below the upper band. The overall trend in RSI is between the 40-80 levels which indicates intermediate to long-term bullish price trend.
Assuming that price breaks above the neckline and closes and opens near the $46 level, a measured move from the head to neckline is $7 gives us a projected target near $53.
My buy price for this trade is $44.41.
My stop-loss(SL) is at $41.11.
My max risk/loss on this trade is roughly -7.5%.
Potential gain is +15%.
On any given trade my position size is based on a max loss that can be no more than 1% of my total portfolio value which determines my trade size. I might lose -7.5% on this trade, but that loss would not exceed 1% of my total portfolio.
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