Michael Kors Holdings Limited engages in the design, marketing, distribution, and retailing of branded women’s apparel and accessories, and men’s apparel. The company operates in three segments: Retail, Wholesale, and Licensing. The Retail segment is involved in the sale of women’s apparel; accessories, which include handbags and small leather goods, such as wallets; footwear; and licensed products comprising watches, jewelry, fragrances and beauty, and eyewear. The Wholesale segment sells accessories, such as handbags and small leather goods, footwear, and women’s and men’s apparel to department stores and specialty shops in North America, Europe, and Asia. The Licensing segment licenses its trademarks on products, such as fragrances, beauty, eyewear, leather goods, jewelry, watches, coats, men’s suits, swimwear, furs, and ties, as well as licenses rights to third parties to sell the company’s products in geographical regions, such as the Middle East, Eastern Europe, Latin America, the Caribbean, Asia (excluding Japan), and Australia.
Take a look at the 1-year chart of Kors (NYSE: KORS) below with my added notations:
KORS has been in a major decline for most of the past year. However,
over the past 4 months the stock has created a key price level to watch
at $45 (blue). As you can see, $45 was both support back in May, and
resistance over the most recent 2 months. A break above that $45 level
should mean higher prices for the stock.
The Tale of the Tape: KORS has a key level of
resistance at $45. A long trade could be entered on a break through that
level. However, if you are bearish on the stock, a short trade could be
made on any rallies up to $45.