Could The Tiffany & Co Stock Find Support Near An Upside Line?

by Darius Anucauskas
12:57, 2020/03/17

From the technical side, after the Tiffany & Co stock (NYSE: TIF) gapped sharply to the upside in the end of October 2019, it managed to find resistance near the 134.41 level, which was not far from its all-time high, at 141.40. From around the end of November 2019 till the beginning of March, the share price was getting squeezed, but the market turmoil led to a strong break to the downside. This move lower also caused TIF to drop below its key support area, at 121.46, marked by the low of November 2019. Although we remain somewhat bearish in the short run, let’s not forget that the stock is still balancing above its medium-term upside support line drawn from the lowest point of August 2019.

The stock could slide a bit more to the downside, where it may test the 113.19 hurdle, marked by the low of November 6^th, 2018. If that area provides some good support, the price may rebound somewhat. That said, if the stock struggles to move above the aforementioned 121.46 barrier, this may result in another slide, possibly even bringing TIF below the 113.19 obstacle and targeting the 109.75 level, marked by the high of May 3^rd, 2019. Slightly below it sits the aforementioned upside line, which could provide a bit of support for the stock.

Our oscillators, the RSI and the MACD, are currently pointing lower, which supports the idea of seeing some downside in the near term. Not only that, the RSI is now in the below-20 zone and the MACD sits comfortably below zero and its trigger line.

Alternatively, if the stock travels back above the previously-discussed 121.46 hurdle, this may attract more buyers into the game, especially if the share price moves above the 126.40 barrier, marked by yesterday’s high. Such a move could open the door towards the 129.26 zone, or even the 132.10 area, which are the highs of March 13^th and 10^th respectively. If the buying doesn’t stop there, the next potential resistance level could be at 134.41, marked by the current highest point of this year.

Anotación: Artículo traducido del original en inglés

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