Trading Setup for CPRI – 2-16-2023

Here’s a great risk reward setup on CPRI, the owner of luxury fashion brands including Versace, Jimmy Choo and Michael Kors. They had an earnings miss last week, which cause the stock to plunge from around 68 down to 48. The stock looks like it might have found support at this level. You can buy at current levels, around 51, and place a stop between 47 and 49, depending on how risk averse you want to be. That’s only 2 or 3 points downside and potentially over 10 points upside.