From the beginning of this year, Tiffany & Co stock (NYSE: TIF) managed to gain around 25%, which is not bad for a luxury goods company. That said, let’s not forget that last year, TIF was also on a rise and kept moving north up until the end of July, when it changed course and has been drifting south until end of December, wiping out all of its gains for that year and closing in the red. But as we said above, the share price is trying to climb back up and recover some of its losses. For now, we will take a cautiously-bullish approach and aim for slightly higher levels, at least in the short run, as we may see a similar scenario playing out this year as well, if the global markets start rolling over.
TIF is currently trading above its medium-term upside support line taken from the low of December. What’s more, on Friday the stock broke above its key resistance at 108.15, which held the price lower from the beginning of April up until Friday. This way TIF confirmed a higher high and now has a good chance to push further up, as more investors could try and join in the bandwagon. Such activity could lead the stock towards the 111.65 hurdle, ore even the 113.20 zone, marked by the low of November 6th. The price might get a hold up there for a while, or even retrace slightly lower. But if it continues to trade above the aforementioned upside line, the buyers might pick up on the lower price and push TIF back up again. If this time the stock will be able to bypass the 113.20 barrier, further acceleration could lead to a test of the 117.85 level, marked by the high of November 2nd.
Taking a quick glance at our oscillators, we can see that the RSI and the MACD are in support of the above-discussed scenario. The RSI is above 50 and points higher. The MACD is still above zero and has now moved above the trigger line as well.
Alternatively, a break of the aforementioned upside support line and a price-drop below the 103.35 support area, could spook investors from the field for a while, which may result in the stock sliding further south. TIF could then move to its 200 EMA on the 4-hour chart, or even lower, to test the 97.55 hurdle, marked by the low of March 22nd. If there is still no interest in the stock from investors at that price, another slide could bring TIF towards the 92.60 level, which is the low of March 8th.
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