L Brands (LB) recently found buyers below $65, but several months of resistance in the $70-$75 area is likely to keep LB from launching an uptrend.
In this daily chart of LB, below, we can see how prices just touched the underside of the declining 50-day moving average line. The 200-day moving average line has a negative slope and defines the longer-term trend of LB. The On-Balance-Volume (OBV) line is not foreshadowing a rally as its relatively flat performance the past five months does not suggest accumulation.
The 12-day momentum study is not diverging from the price action so we don't have a bullish divergence to suggest a stronger market ahead.
This three-year weekly chart of LB, above, is not encouraging. LB is trading below the declining 40-week moving average line. The weekly OBV line does not suggest aggressive buying and the Moving Average Convergence Divergence (MACD) oscillator is below the zero line and poised to cross to a new sell signal.
Bottom line: Unless LB can push up through overhead resistance, the more likely path will probably be further weakness towards $60.
