Tapestry Jumps 5.25% On Bullish Technical Breakout With Surging Volume

Tapestry (TPR) rose 5.25% in the most recent session to close at $111.89, reclaiming its upward trajectory after a brief pullback, with trading volume surging to 4.25 million shares. This strong bullish candle sets the stage for our comprehensive technical analysis.
Candlestick Theory
Recent price action shows a pronounced bullish reversal pattern. The August 4 session formed a robust white candle that fully engulfed the prior two bearish candles (July 31 and August 1), suggesting renewed buying pressure. Key resistance is now established at $111.93 (intraday high), while support crystallizes at $105.74 (July 29 low) and $100 (psychological support validated by multiple tests since April). The rejection of prices below $107 twice in late July followed by the current breakout implies underlying strength.
Moving Average Theory
The 50-day moving average ($95.20) maintains an upward slope above the 100-day ($84.10) and 200-day ($73.50) averages, confirming the primary bull trend. Current price ($111.89) trades significantly above all three moving averages, with the 50-day recently acting as dynamic support during the July correction. The ascending alignment of the 50>100>200-day MAs indicates sustained intermediate-term momentum.
MACD & KDJ Indicators
The MACD histogram has turned positive after a brief dip below signal line in late July, suggesting recovering bullish momentum. KDJ readings recently oscillated in overbought territory (K-line at 82, D-line at 75), but the current price surge shows resilience despite elevated levels. Notably, the K-line crossing above the D-line after a minor reset indicates potential acceleration of upward movement.
Bollinger Bands
Volatility expanded significantly during the August 4 breakout, with price pushing against the upper Bollinger Band ($110.20) after a period of band contraction in late July. The bandwidth expansion confirms directional conviction. Historically, such expansions after consolidation phases (like June-July's narrowing bands) have preceded sustained directional moves. Current upper band resistance aligns with psychological $110.
Volume-Price Relationship
The breakout was validated by volume increasing 20% above the 30-day average. Notable accumulation occurred at key support zones, particularly during the $100-105 consolidation in July. The absence of volume spikes during downside moves (July 29 decline showed average volume) versus strong volume on upside breaks (August 4, June 16) signals healthy demand/supply dynamics favoring bulls.
Relative Strength Index (RSI)
The 14-day RSI reads 68 after the recent surge, approaching overbought territory but not yet signaling exhaustion. It's noteworthy that during the July pullback, the RSI never breached 40, maintaining constructive momentum structure. The current reading remains below January's overbought peak (RSI 78) when prices were substantially lower, suggesting runway remains for upside.
Fibonacci Retracement
Applying Fib levels to the primary swing from March low ($70.40) to current high ($111.93) reveals confluent support zones. The 38.2% retracement ($95.80) aligns with the June consolidation and 50-day MA. More critically, the 23.6% level ($103.50) coincides with the July double bottom and recent breakout point, creating a major support confluence. On extensions, the 161.8% level projects toward $120 if the current momentum persists.
Confluence and Divergence
Significant bullish confluence appears at $103-$105, where Fibonacci support, moving averages, volume accumulation, and prior swing highs converge. No major divergences currently appear between momentum oscillators and price, though traders should monitor RSI for potential bearish divergence should prices advance while momentum wanes. The Bollinger Band expansion/volume confirmation provides high-probability validation of the recent breakout.