Urban Outfitters, Inc. (URBN) was reviewed at the beginning of June, where I wrote that "Longs should, in my opinion, raise sell stop protection to just below $38 -- the May low. Maybe the Point and Figure chart will be right about the price target (of $51)."
URBN drifted lower from early June to recently make a successful test of the rising 50-day moving average line. With new and higher prices from an updated Point and Figure chart, a fresh look at URBN is warranted.
In this daily bar chart of URBN, below, we can see some improvement in the price based indicators. The moving averages are rising and bullish and the Moving Average Convergence Divergence (MACD) oscillator is close to a fresh outright go long signal. The daily On-Balance-Volume (OBV) line however is still neutral at best.
In this weekly bar chart of URBN, below, we can see that prices are above the rising 40-week moving average line. The weekly OBV line is steady and the MACD oscillator on this longer time frame is touching - a turn up looks possible from here if prices rally.
In this weekly Point and Figure chart of URBN, below, we can see a bullish breakout at $48 followed by a dip. Despite this pullback the chart shows a possible longer-term price target of $73.50.
Bottom line: Traders should look to go long URBN on strength back above $48 risking below $42. $73.50 is our price objective.