PVH Corp. operates as an apparel company in the United States and internationally. It is engaged in the design, marketing, and retail of branded dress shirts, neckwear, sportswear, footwear, athletic apparel, body wear, eyewear, sun wear, watches, handbags, men’s tailored clothing, men’s dress furnishings, accessories, women’s dresses and suits, women’s sportswear and performance apparel, golf apparel, hosiery, socks, small leather goods, fragrances, home and bedding products, bathroom accessories, and luggage. The company offers its products under the own brands, such as Calvin Klein, Tommy Hilfiger, Van Heusen, IZOD, ARROW, Warner’s, Olga and Eagle; and licensed brands comprising Speedo, Geoffrey Beene, Kenneth Cole New York, Kenneth Cole Reaction, Sean John, MICHAEL Michael Kors, Michael Kors Collection, Chaps, Donald J. Trump Signature Collection, DKNY, Elie Tahari, Nautica, Ted Baker, J. Garcia, Claiborne, Robert Graham, U.S. POLO ASSN., Ike Behar, Axcess, Jones New York, and John Varvatos.
To review PVH’ stock, please take a look at the 1-year chart of PVH (PVH Corp.) below with my added notations:
PVH has been trading sideways for the last 3 months. Over that period of time the stock has formed a clear resistance level at $127 (red). In addition, the stock has also created a strong level of support at $115 (green) that was also support back in October. At some point the stock will have to break one of the two levels the rectangle pattern has created.
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The Tale of the Tape: PVH has clear levels of support ($115) and resistance ($127). The possible long positions on the stock would be either on a pullback to $115, or on a breakout above $127. The ideal short opportunities would be on either a break below $115 or on a rally back up to $127.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT
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