Tiffany & Co., through its subsidiaries, designs, manufactures,
and retails jewelry worldwide. Its jewelry products include fine and
solitaire jewelry; engagement rings and wedding bands to brides and
grooms; and non-gemstone, sterling silver, gold, and metal jewelry. The
company also sells timepieces, leather goods, sterling silverware,
china, crystal, stationery, fragrances, and accessories. In addition, it
wholesales diamonds to third parties. The company offers its products
through retail sales, Internet and catalog sales, business-to-business
sales, and wholesale distribution. As of January 31, 2015, it operated
295 stores, including 122 stores in the Americas, 73 stores in the
Asia-Pacific, 56 stores in Japan, 38 stores in Europe, 5 stores in the
United Arab Emirates, and 1 store in Russia.
Take a look at the 1-year chart of Tiffany (NYSE: TIF) below with added notations:
After a big drop in January, TIF started trading sideways over the
following 4 months. The stock then jumped higher in May and has traded
sideways, again, since. While in the most recent sideways move, the
stock has formed a common pattern known as a rectangle. A minimum of (2)
successful tests of the support and (2) successful tests of the
resistance will give you the pattern.
TIF’s rectangle pattern has formed a resistance at $95 (red), which
has also been key to the stock in the past, and a $90 support (green)
that was a key resistance during TIF’s previous sideways move. At some
point the stock will have to break one of the two levels, and if the $95
resistance breaks, traders should look for a run back up to the $100
level (blue).
The Tale of the Tape: TIF is trading within a
rectangle pattern. The possible long positions on the stock would be
either on a pullback to $90 or on a breakout above $95. The ideal short
opportunity would be on a break below $90.
