Invested Central Chart of the Day 2.12.10

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TIF is a $5.2 billion retailer that engages in the design, manufacture, and sale of fine jewelry. TIF moved steadily higher in a nice uptrend throughout most of 2009. However, in early January 2010, TIF printed what potentially could be the head of a head & shoulders topping pattern. During the middle of January, TIF sold off on very heavy volume, losing its uptrend line, 20 day EMA and 50 day SMA. At the end of January, TIF experienced a "death cross" like so many other stocks and indices, where the shorter-term moving average (20 day EMA) crosses beneath the longer-term moving average (50 day SMA). After putting in the right side of a downsloping neckline, TIF has bounced back to its 20 day SMA while its RSI has risen to 48. If a downtrend is underway, TIF will likely encounter resistance in the very near-term. $41.50-$42.50 should serve as key resistance, while a target on a short position could be at the $39.00 level. A confirmed break beneath the neckline at $39.00 would measure down to the $31.00-$32.00 area in time.

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