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Michaelkors

KORS - 100%+ profit in 6 months --> Time to take profits?Michael Kors (KORS) has had an impressive 6 months skyrocketing up in its price from just over $30 to $65+ now . That's (almost) more than a 100% increase in six months (depending on your entry price). Stating it as an annualised return is stupid but it's fun to just say that that would mean just under or over 200%. In any case, the run up has been great. But what now? If we look at the weekly graph, we see that KORS is racing its way to the 50% Fibonnacci retracement . It will test it soon and the question will then be: will it break through? In terms of fundamentals of the stock, it might be possible to break this resistance line - the company has held practically no debt in its entire history, is still growing abundantly (albeit a bit less in its base market US), its new men's fashion unit is paying off as well as its acquisition of Jimmy Choo, and the investment in the online channels has shown great results; although KORS still has to work its way back up in terms of brand appeal, which has been relatively strongly diluted in the past couple of years - but as for the moment I believe it is far too risky to aim for breaking resistance. --> The technicals support this view: KORS is aiming for a test of the 50% Fibonnacci level, yet has both MACD (upcoming death cross) and RSI (way above 70) against it . These are very bearish signals that can have the stock pull right back to maybe even the 38,2% and by bearish extension the 23,6% one. Moreover, illustratively , you can see w hat happened after the golden cross back in January 2016 : price jumped through the roof and successfully tested the 23,6% Fibonnacci (note that there, it did have MACD and RSI support!), subsequently it tested the 38,2% Fibo, failed, and plummeted back completely (and in the process made a clear H&S figure :-) )! In any case, I do believe the longer term prospects of the company are quite bullish, but a correction in the stock price is to be expected. Therefore, I would (non-officially ;) )recommend to take some profits and get back in at a more depressed price if one likes this stock. (However - really investing in fashion stocks is something very difficult, as it has a very capricious customer base). Great trade, but time for something new! PS: I haven't done a detailed analysis in this piece, but to place the correct stop losses etc, definitely zoom in on the upper trend channel KORS is currently in to define these!
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by A_Cryptastic_Mind
Potential Bullish Wedge in KORSMichael Kors (KORS) is a company that has been on my radar for a good quarter. Ever since the retail apocalypse, many retail stocks continue to pop up on my screens in my search for deep value. KORS is an interesting play, and I will have a detailed write up on it on my investing blog (rockvuecapital.wordpress.com) within the week. But for now, lets look at the technicals. Like I mentioned in the title, KORS seems to be forming a wedge pattern, with the potential to go bullish if things line up. KORS is closing in on breaking its 50 MA in a bullish manner, while at the same time being provided support from higher lows and higher highs since March. What's important to watch for is the initial breakout above the 50 MA. If it breaks out above its 50 MA, it has the fundamentals to ride a bullish trend into the mid $40s, at which I would begin placing profits, and then anything after that I would camp my stop loss right around the mid $40s and continue to trail my stops and enjoy the trend. Details on the company fundamentally will be coming soon. Look out for them at rockvuecapital.wordpress.com
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by BrandonBeylo