Tapestry tries to recoup losses - Analysis - 13-05-2022

Tapestry's stock (TPR) surged 15.5% in the last session,  or 4.11 points, settling at 30.63, with trading volumes surpassing 12 million shares, compared to the 10-session average of 5.5 million shares.

The luxury accessories company changed its total year financial projections as China locks down major cities to contain a fresh Covid 19 wave, however higher prices and stronger demand underpinned sales in the third financial quarter.

Technically, the stock is recouping some recent losses, while venting off oversold saturation from the RSI, amid positive signals out of them, with the dominance of the downward correctional short-term trend, with negative pressure from the 50-day SMA.

Therefore we expect the stock to return lower, targeting the support of 26.38 anew, provided the resistance of 35.85 holds on.

Expected trend for today: Bearish