Tiffany & Co., through its subsidiaries, designs, manufactures, and retails jewelry and other items in the Americas, the Asia-Pacific, Japan, Europe, and internationally. The company offers jewelry collections, engagement rings, and wedding bands. It also sells timepieces, leather goods, sterling silver goods, china, crystal, stationery, eyewear, fragrances, and other accessories; and wholesales diamonds and earnings. The company sells its products through retail, Internet and catalog, business-to-business, and wholesale distribution channels.
Take a look at the 1-year chart of Tiffany (NYSE: TIF) below with my added notations:
Over the course of the past year, TIF has commonly found support or resistance on the increments of $5 (blue). For example, $110 was resistance in January, and also support last week. The $120 level has been support twice, and $115 was a recent resistance. Identifying this tendency should help when it comes to identifying when to enter a trade on TIF.
The Tale of the Tape: TIF is currently trading between the $105 and the $110 levels. A long position could be entered at $105 or on a break above $110 with a stop placed below the level of entry. If TIF breaks below $105, or rallies up to $110, a short position could be entered instead.
Would you like assistance in making your TBS trades? If so, email me at Christian@yolopub.com and let’s talk about working together one on one!
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