WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

Today’s Trading Edge: Tiffany & Co. shares rebound after Q3 revenue miss

Posted by WorldWideMarkets . on Nov 24, 2015 5:39:23 PM


Tiffany & Co. (TIF) shares initially dropped after a disappointing third-quarter that was hampered by the strong U.S. dollar.  Profit came in at an adjusted $0.76 a share, a slight beat to the $0.74 forecast. The big miss came with revenue printing at $938 million, much lower than the eyed $972 million. The company also cut full-year 2016 EPS -10% to -4%. The bearish market reaction was short-lived as the company provided business optimism during its conference call. The company also raised cash flow to $500 million from $400 million.

Price action on the TIF daily chart shows that prior to the earnings release, a bullish ABCD pattern formed. Point C was confirmed just ahead of the 50.0 Fibonacci retracement level of the A to B move. Point D was targeted with the 161.8% Fibonacci expansion level of the B to C leg. The key respect of this reversal pattern immediately following the earnings release could open the door for a strong advance.  If the bullish rebound continues, upside may target the 100-day SMA, which currently trades around the $84.06 level. Further upside could eventually target the psychological $90 handle. If we see downward pressure return, only a break of the $73 level would revive the longer-term downward trend. Deeper support may target the $70.00 level.  

The Trade: Buy TIF at $79.00, with a stop loss at $77.00 and a take profit at $83.00.  The Risk/Reward Ratio is 1:3 

Topics: Stocks, US Stocks


Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

Browse our frequently asked questions and find your answers right away.

Access to the educational lessons, webinars and platform walkthroughs.


Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!