Coach Breaking Out? And Yum! Brands Closing in to Resistance
After stocks gained for the third consecutive session on solid earnings reports and on the back of a drop in weekly jobless claims to a 4-year low and successful bond auctions in the euro zone; we identified the following trading ideas.
Shares of Coach (NYSE: COH) closed the trading session at $65 just above calculated resistance at $63.64 moving to what appears to be a new range, as this move will clearly raise the attention of momentum buyers. Shares moved to the upside after William Blair initiated its coverage with Outperform, saying Coach is in the early stages of transforming into a global brand.
Coach (NYSE: COH) designs, makes, and markets luxury lifestyle handbags and accessories. Its products include handbags, business cases, men's and women's accessories, luggage and travel accessories. Coach, together with a licensing partner, offers watches, footwear, furniture, and eyewear.
Coach's stock was trading in a well-defined range with support at $59.74 and resistance at $63.64; given that this range was broken traders will be closely monitoring the stock.
Another trading idea is Yum! Brands (NYSE: YUM). The Pizza Hut, KFC, and Taco Bell restaurant chains owner and operator ended the session at $62.47, very near its calculated resistance at $63. Yum's price action is just below the key resistance levels, which make it difficult to buy.
Traders don't have a clear entry point for Level 3, as the stock is well above support, however, as the stock pulls back towards $52.54 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $63.00 then traders will get an opportunity to enter Yum! Brands stock by establishing a position as the stock moves to a higher range.
Yum! Brands, Inc. (NYSE: YUM) owns and franchises quick-service restaurants worldwide. The Company develops, operates, franchises and licenses a worldwide system of restaurants, like Pizza Hut, KFC, and Taco Bell.
