PVH Corp. (PVH) was reviewed in May where I wrote that, "In the short-run I would look for PVH to trade sideways around $155. Strength above $164/$165 is needed to refresh the uptrend and I am not sure when we might see that happen. I am not bearish on the stock but I think a longer-consolidation pattern is what we should expect for now." Looking back over the past three months of price action I can see I was "whipsawed" a bit. The rally in early June above my $164-$165 threshold failed miserably. The idea of PVH trading around $155 was probably the right idea until recently.
In this daily bar chart of PVH, below, we can draw a straight line across $155 until this week. Notice how prices slumped to the downside yesterday? PVH sold off below the declining 50-day moving average line and the rising 200-day line. The 50-day average is close to moving below the 200-day line for what is commonly called a dead cross. PVH also closed below the early July low. There is some chart support around $140 but that could break. The daily On-Balance-Volume (OBV) line shows a peak and the trend-following Moving Average Convergence Divergence (MACD) oscillator has just moved below the zero line for an outright sell signal.
In this weekly bar chart of PVH, below, we now have a weakening chart. Prices are below the rising 40-week moving average line. The weekly OBV line has been pointed down since early June and the MACD oscillator is pointed down near the zero line.
In this Point and Figure chart of PVH, below, we now project a downside price target of $123.
Bottom line strategy: If PVH breaks below support around $140 it will make the chart look like a top pattern from January to now. The close below the 200-day moving average should not be ignored by traders and investors.