Tomorrow Jim Cramer will be watching retail with earnings from Urban Outfitters (URBN) and several others. He was bullish on all the names he covered on Mad Money Friday except URBN.
Let's check the charts of URBN to see if there is any hope for this depressed name.
In this daily bar chart of URBN, below, we can see that prices have remained below the declining 50-day moving average line since early September. Rallies to around the line have all failed. The slower-to-react 200-day line also has a negative slope. In early November the 50-day average line crossed below the 200-day line for a bearish death cross.
The On-Balance-Volume (OBV) line started a decline in September and it has not yet bottomed. In the lower panel is the 12-day price momentum study which shows that momentum has slowed from December to February even though prices are still declining. A slower pace to the decline is a bullish divergence but it is not enough for a buy signal.
In this weekly bar chart of URBN, below, we can see that prices are below the declining 40-week moving average line.
The weekly OBV line is pointed down and the MACD oscillator is way down in bearish territory.
If URBN does not develop support around $30 then further declines to $20 are possible.
In this Point and Figure chart of URBN, below, we can see the downtrend and a lower price target.
Bottom line strategy: URBN is pointed lower, maybe much lower in the months ahead. $20 is a possible downside target for this retailer. Avoid the long side.
