PVH Corp. (PVH) has been weak since its peak back in June. Prices have declined about $60 from the zenith and the question is whether prices can or will hold and rebase or if further weakness lies ahead?
Let's check out the charts and indicators for clues and guidance.
In this daily bar chart of PVH, below, we can see that prices are below the declining 50-day moving average line which turned negative back in June. The 200-day moving average line peaked in early October and its slope is now negative.
The daily On-Balance-Volume (OBV) line peaks at the end of August and its three month decline tells me that sellers are more aggressive.
In the lower panel is the 12-day price momentum study which shows equal lows in September, October and November, which is a bullish divergence when compared to prices making lower lows. So far this bullish divergence has not generated a decent rally attempt.
In this weekly chart of PVH, below, we can see prices below the declining 40-week moving average line.
The weekly OBV line has been trending lower from early June and the MACD oscillator is well below the zero line with no sign yet of a reversal.
In this Point and Figure chart of PVH, below, we can see that prices have reached a downside price target. No accumulation is showing so a long position is not recommended yet.
Bottom line strategy: PVH could hold around $110 but with no strong signs of new buying or accumulation I cannot get excited about the long side. I cannot rule out further declines for PVH but no price targets are currently readable.