Tapestry (TPR) Surges 4.89% on Bullish Reversal Pattern as Key Resistance Levels Emerge

Tapestry (TPR) surged 4.89% in the most recent session, closing at $123.49, a price that aligns with a bullish reversal pattern on the candlestick chart. The prior session’s bearish setup, marked by a lower high and lower close, was negated by the subsequent strong buying pressure, suggesting a potential short-term support level at $117.73 (the previous day’s close). The recent candlestick’s long upper wick and strong close near the high indicate a rejection of bearish momentum, with key resistance now established around $118.49–$123.55. A break above this range could target the next psychological level at $125, while a retest of the $114.39–$117.73 zone may confirm its durability as a support area.
Moving Average Theory
The 50-day moving average (approximately $108.50) and 100-day MA ($106.50) are well above the 200-day MA ($99.50), confirming an intermediate-term uptrend. Tapestry’s current price of $123.49 sits above all three, reinforcing bullish momentum. However, the 50-day MA is diverging from the 100-day MA, which may indicate a potential flattening of the trend if the 200-day MA begins to catch up. A cross below the 50-day MA would signal caution, while a sustained close above $114.97 (the 200-day MA as of the latest data) would maintain the bullish bias.
MACD & KDJ Indicators

The MACD line has recently crossed above the signal line with positive divergence, suggesting accelerating momentum. The histogram’s expansion aligns with the 4.89% gain, though overbought conditions in the RSI (discussed below) may temper further gains. The KDJ stochastic oscillator shows %K and %D converging near overbought territory (80+), indicating a high probability of a near-term pullback. A bearish crossover in KDJ could precede a retracement to the $114–$117.73 range, particularly if volume wanes.
Bollinger Bands
The bands have widened significantly following the recent volatility, with Tapestry’s price near the upper band. This suggests elevated volatility and potential for a consolidation phase. A reversion toward the 20-day moving average (approximately $115.50) would signal a healthy correction, while a break above the upper band could extend the rally to $127. However, the narrow band contraction observed earlier in December may have resolved this volatility, making a continuation of the uptrend more likely.
Volume-Price Relationship
Trading volume spiked to $381.66 million on the 4.89% gain, validating the move as a strong buying opportunity. However, volume has since declined to average levels (~$300–$400 million), which may suggest reduced conviction. A sustained increase in volume during an up-move would confirm strength, while a divergence (e.g., higher prices with lower volume) could signal exhaustion. The recent volume pattern aligns with the price action, but caution is warranted if volume fails to support further gains.
Relative Strength Index (RSI)
The 14-day RSI is currently near 70, indicating overbought conditions. While this does not necessarily signal an immediate reversal—especially in a strong trend—it increases the probability of a pullback to the 50–60 range. A drop below 50 would suggest a bearish shift, though the RSI’s recent divergence from price (higher highs but lower RSI peaks) implies caution. A retest of the 60–70 zone with lower volume could confirm a bearish setup.
Fibonacci Retracement
Key Fibonacci levels derived from the December 5–11 rally (low: $110.78, high: $118.915) include 38.2% at $115.80 and 50% at $114.85. Tapestry’s current price has already retraced past these levels, suggesting that the $114.39–$117.73 zone (from mid-December) is critical. A breakdown below 61.8% at $113.70 would target the $111.92–$109.26 consolidation range, while a hold above $114.85 would reinforce the bullish case.
Confluence and Divergences
The strongest confluence exists between the bullish candlestick reversal, the 50/100/200-day MA alignment, and the recent volume surge. However, overbought RSI and KDJ levels create a divergence risk, particularly if the MACD histogram begins to contract. The Bollinger Bands’ current position near the upper edge also suggests a high probability of a near-term pullback. Traders should monitor the $114.39–$117.73 zone for a potential consolidation phase before resuming the uptrend.