On December 5, 2017, Goldman Sachs reiterated their buy on KORS. This is strikingly curious as the stock has climbed over 81% since breaking out in August.
Seems like they are looking for some suckers to chase the upside momentum.
At FlashPoint, we are focused on the Parabolic Extension which is now +34%; unusually high for KORS without a pullback.
As we convey to our clients over and over again, Parabolics DO NOT END WELL and generally fall back to the most recent breakout (in this case a little over $50). However, Parabolic Extensions require additional confirmation before jumping into a short position. In this case, we have reached the top of a Rising Channel, Momentum is slowing, and other indicators are pointing to an overbought condition.
FlashPoint prefers trading KORS from the short side using a $61.57 stop with our initial target is $52.
If you like our analysis, please be sure to follow or comment. Thanks!
Seems like they are looking for some suckers to chase the upside momentum.
At FlashPoint, we are focused on the Parabolic Extension which is now +34%; unusually high for KORS without a pullback.
As we convey to our clients over and over again, Parabolics DO NOT END WELL and generally fall back to the most recent breakout (in this case a little over $50). However, Parabolic Extensions require additional confirmation before jumping into a short position. In this case, we have reached the top of a Rising Channel, Momentum is slowing, and other indicators are pointing to an overbought condition.
FlashPoint prefers trading KORS from the short side using a $61.57 stop with our initial target is $52.
If you like our analysis, please be sure to follow or comment. Thanks!
AlgoTrend Capital LLC