The USD 75.6 support area, currently tested, might facilitate a technical rebound. The company’s fundamentals could validate this scenario.

The company has a particular growth potential as shown by the revenues estimates for the next years. Indeed, the latter should double from around 3 billion dollars to 6 billion in 2017. Concerning future benefit, analysts have been revised upward their estimates for the current and the next year since January 2014.

After several weeks of horizontal fluctuations within the mid-term range USD 75.6 / 84.2, the stock is coming back close to the lower limit of the range. The current consolidation phase let think about a reversal movement in order to aim short and mid-term resistances. The oversold situation of the stock in daily data and the support of the 100-week moving average should help this scenario.

Therefore, the proximity of the USD 75.6 support is an opportunity to take a long position in Michael Kors Holdings. The first goal is a return in the USD 79.45 resistance area, that is a potential of 2.9%. In fact, the security has to cross this area in order to re-establish a bullish trend and to reach the main target at USD 84. A stop loss order can be placed under the support currently tested.