The USD 68.9 support, currently tested, should allow Michael Kors Holdings to rally again.

The company displays strong valuation and profitability with an EPS expected to rise from 1.97 dollars in 2013 to 3.22 this year while net income should rise from 398 to 661 million dollars. Analysts' consensus regarding the target price is valued at USD 94.6, which represents a good gain potential.

Technically, the security is oversold, and is currently close to the USD 68.9 support. This situation gives credit to a potential technical rebound. Thus, the stock could find new energy and would rise towards the USD 78.60 level, in order to fill the recent gap.

In fact, the configuration could quickly take over an uptrend with the combination of all technical and fundamental factors. Most active investors could therefore open buyers positions to aim the USD 73.75; the crossing of this level would open the way to new objectives with a second technical target at USD 78.60. However the position needs to be protected by a stop-loss order below the USD 68.9.