We have not looked at the charts of PVH Corp. (PVH) since December 3 where we wrote, "Raise stop protection on any longs to $67. Our price targets for now are $96 and the $101-$104 area." Prices have reached our target zone and a bit more, so let's check the charts out again.
In this updated daily bar chart of PVH, below, we can see that prices have continued their gains that began in early November. Trading volume has diminished in the past month which is a little worrisome but the On-Balance-Volume (OBV) line has gone on to make a new high for the move up. For now the buyers are still more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator is also bullish for now but the two moving averages in the MACD oscillator are close and could easily cross lower instead of higher.
In this weekly bar chart of PVH, below, we can see a bullish picture. Prices are in an uptrend after breaking a longer-term downtrend. Prices are firmly above the rising 40-week moving average line.
The weekly OBV line and the MACD oscillator are both very positive.
In this daily Point and Figure chart of PVH, below, we can see that prices have reached their $104 price target.
In this weekly Point and Figure chart of PVH, below, we can see that the $177 area is the next potential price objective.
Bottom line strategy: PVH has made an impressive recovery from its March nadir. Some sort of correction or pullback seems likely. Perhaps back down to the $85 area. Traders should consider taking profits now while looking to rebuy PVH after a correction and new base pattern.
