Tiffany & Co (TIF) Outlook: More Downside Likely On China Slowdown

Steve Miller

Tiffany & Company (NYSE: TIF) traded 7% lower on Wednesday morning on concerns about a slowdown in Chinese consumer spending.

French luxury retailer Louis Vuitton (LVMH) missed analyst estimates, posting revenue of €11.4 billion versus €11.6 billion. With China’s economy slowing, Louis Vuitton’s results may have flared concerns about consumer spending.

As LVMH traded 9% lower, the news also hit Tiffany and others with exposure to the Chinese luxury retail space. This is based in part on low sales during the recent “Golden Week” holiday, with sales only 7% higher, which is the first year at less than 10%.

In reviewing the market cycles for Tiffany & Company (TIF), it appears that the cycle began six weeks ago. Even though we are relatively early in this cycle, we can see that the stock has fallen below the price at which it began the cycle.

This is a failure that indicates a weak chart pattern.

Our projection is for the stock to continue to fall to $104 by the end of the cycle in January.

Tiffany & Company (TIF) Stock Chart with Weekly Bars

tiffany company stock chart investing outlook forecast tif_october 2018

For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel.

Twitter:  @askslim

Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.

NOT INVESTMENT ADVICE – PLEASE READ INVESTMENT DISCLAIMER.