Big Gainer at the Opening Bell: Tapestry

Close-up of market chart
On Wednesday morning, Tapestry (TPR), a designer of clothing and luxury leather products gapped up approximately 6.0% before continuing to advance. Before market open, the company was upgraded to "buy" from "hold" at Deutsche Bank.  

Looking at a daily chart, Tapestry's stock price has been rising rapidly since Thursday, September 10th, after the company was initiated with a recommendation of "outperform" at Exane. The RSI is bullish and has entered overbought territory sitting at roughly 73. Price has also just made an intraday cross above the 200-day simple moving average (SMA), which is a positive signal. If price can close above the 200-day SMA, it will be an even stronger bullish signal. Price appears to be headed to retest the $20.25 resistance level. If the momentum continues it will likely penetrate that level and advance towards the $22.00 resistance level. On the other hand, since the RSI is in overbought territory, we could see a sell off that brings price back around its $16.00 support level. Price will likely find support at $16.00 and bounce. If price fails to bounce, we could watch price break down further to $14.25. If price cannot rebound off of $14.25 it would be a bearish signal that could send price tumbling lower.             



Source: GAIN Capital, TradingView

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