Tiffany Bearish Earnings Play w/ Limited Risk (TIF) – Bearish DailyPlay – March 20th, 2019
Bearish – TIF $97.02 – Consumer Discretionary
Alert: This is an earnings play, TIF reports earnings on March 22nd
The bearish DailyPlay we chose for Wednesday, March 20th is Tiffany (TIF). TIF is part of the Consumer Discretionary Sector (XLY). XLY has rallied 1.97% higher over the past month and its 1m and 6m trends turned bullish on April 15th, but is currently overbought and testing a major resistance level at $113.
Tiffany’s 1m and 6m trends turned neutral and bullish on January 30th and have been overbought for weeks with resistance at $99. With a technical score of 3 (out of 10), TIF is a weak stock that will likely trade lower on earnings.
As a stop loss, if TIF was to trade above $99 for multiple days, this would invalidate our analysis and suggest getting out of the trade.