Fundamental backdrop:âŻThe Q4/FullâYear release paints Tapestry (TPR) as a âbreakoutâ year, with the CEO emphasizing âstrong growthâ and an âoutperformanceâ in the fourth quarter. A sentiment score of 70 signals bullish market perception, and the earnings beat (both topâline and EPS) will likely lift the consensus earningsâgrowth estimates for FY25â26. In the short run, investors typically reward such narrative with a rapid price rally, especially given the fashionâretail sectorâs current rotation into growthâoriented names.
Technical context:âŻTPR has been trading in a tight 6âmonth range (â$28â$34). The earnings beat is poised to trigger a breakout above the upper channel and the 50âday EMA (~$31.8). Volume on the earnings press release historically spikes 2â3Ă average, providing the necessary thrust. If the stock clears the $34 resistance with solid volume, the next logical target is the prior high around $37â$38. Conversely, a failure to sustain above $33 may invite shortâterm profitâtaking and a pullâback to the $30â$31 support zone.
Actionable takeâaway:âŻGiven the strong fundamentals and the high probability of a technical breakout, a shortâterm âbuyâtheâdipâ or âbreakoutâ trade is justified. Consider entering a long position if TPR closes above $33.5 with volume above the 10âday average, placing a stop just below $31.5 (the 20âday EMA) and a primary profit target near $36.5â$38. If the stock spikes past $34 but stalls and reverses below $32, a quick exit or a defensive put spread can capture the downside risk from shortâterm profitâtaking. Expect elevated volatility for the next 1â2 weeks as the market digests the earnings narrative.