In the past few sessions, Michael Kors shares suffered from a sharp fall and is now near a significant level.

From a fundamental viewpoint, the company showed and should show again this year, high growth rates. There is a strong buyer consensus and the current valuation show a +35% potential to reach the analysts average price target. The share is presently in an oversold situation and had recently suffered from Macy’s 2015 outlook. Moreover, the current P/E ratio is far below the industry average.

Technically, the stock has been in a bearish trend for many months. Nevertheless, investors can legitimately think that this downward trend may stop and even reverses. Indeed, the security is currently testing the USD 62.95 support and the closeness of the lower trend line suggests that no major collapses are likely to happen.

Consequently, investors may open a long position at current prices and target a reversal toward the USD 68 pivot point. A stop loss should be set at USD 62.5, in case of continuation of the bearish trend.

At the publication date, the company Surperformance, 4-traders.com website publisher, held a position of 135 shares, acquired at an average price of USD 69.52.