A look at Michael Kors Holdings — too high to buy.
Michael Kors Holdings ($KORS) averages are at $79.03 (21 day SMA), $80.41 (50 day SMA), $71.16 (200 day SMA). Over the past 52 weeks KORS has traded from a low of $51.63 to a high of $84.58. KORS was last at $91.00 on a volume of 12,933,900. Average daily volume has been at 3,452,102.
|
Michael Kors (KORS) announced excellent earnings results this morning and the stock gapped up nearly 20%. This is well outside the statistical range for this stock — above even 4 standard deviations from the 20-day moving average. The stock peaked at the open and has been selling down a bit. But the stock is surprisingly strong this morning and is not trading as low as you might expect. Still, technical traders might consider selling short and keeping a stop just above the intraday high of $93.18. If the bulls push the stock to a new high, we’ll likely see a lot of short covering and even more buying interest from momentum traders. So a stop above the high would contain the risk.
Michael Kors Holdings Ltd designs, markets and distributes women’s apparel and accessories and men’s apparel. It operates in three business segments namely retail, wholesale and licensing.
Articles