We covered the technical outlook for Ross Stores, Inc. (ROST) earlier this year and we concluded at that time that, "With a weekly bearish divergence signaling caution I would recommend taking some profits or raising stop loss protection. A close below $61 on ROST should prompt additional liquidation or profit-taking."
Nearly six months later and we find that ROST has lost around $10 per share from around $66 to around $56 with the pace of selling increasing below $61.
In this updated daily bar chart of ROST, above, we can see how things unfolded from January. Prices broke down below the flat 50-day moving average line in March and the slope of the line turned bearish in April. ROST closed below the still rising 200-day moving average line in April and the line rolled over in May.
The On-Balance-Volume (OBV) line was mostly neutral from December but it has clearly weakened since the middle of May. The trend-following Moving Average Convergence Divergence (MACD) oscillator moved below the zero line in March for an outright sell signal. The oscillator is still bearish.
In this updated weekly bar chart of ROST, above, we can see that prices are now below the declining 40-week moving average line. The weekly OBV line is trending lower and the MACD oscillator on this timeframe has turned outright bearish with its decline below the zero line last month.
Bottom line: ROST now looks extended on the downside so a rebound could develop but I would anticipate further losses whenever this bounce runs its course.