Michael Kors has been on a roller coaster ride since the end of April, but this summer has been good for the stock. After a catastrophic dip in May, it appears poised to move higher – perhaps much higher.
As you can see on the chart, the stock broke a downtrend line in early June rather unimpressively. Jump forward to the first day of August, and you can see it had a robust gain on strong turnover. This move put Michael Kors back at the levels not seen since it started getting pounded in late April. Momentum is clearly bullish, and relative strength is quite impressive. Because of the rather flat moving averages, the MACD has not signaled a buy yet but the fuse has been lit. This stock can move towards the old highs (low 60’s) in quick order. (Note that earnings are out later this month.)
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About Michael Kors
Michael Kors Holdings Limited engages in the design, marketing, distribution, and retailing of branded womens apparel and accessories, and mens apparel. The company operates in three segments: Retail, Wholesale, and Licensing. The Retail segment is involved in the sale of womens apparel; men’s apparel; accessories, which include handbags and small leather goods, such as wallets; footwear; and licensed products comprising watches, jewelry, fragrances, beauty products, and eyewear. It operates collection stores and lifestyle stores, including concessions and outlet stores. As of April 2, 2016, this segment operated retail stores in the United States, Canada, and Latin America, including concessions, as well as e-commerce sites in the United States and Canada; and 278 international retail stores, including concessions in Europe and Asia. The Wholesale segment sells accessories, such as handbags and small leather goods, footwear, and womens and mens apparel to department stores and specialty shops in the Americas, Europe and Asia.