RH ( RH) is trading lower Thursday in reaction to reporting weak quarterly results Wednesday evening. Let's check out the charts of this housewares, furniture and lighting retailer.
In this daily bar chart of RH, below, I can see that prices are making a large outside day and likely a lower close.
Stepping back from the chart a bit the pattern is sideways the past year with trading between $350 on the topside and around $225 on the downside. RH is trading below the declining 50-day moving average line and below the flat 200-day line. The On-Balance-Volume (OBV) line is neutral and has moved up and down with the price action the past year. The risk is the OBV line moves to a new low for the move down. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In this weekly Japanese candlestick chart of RH, below, I see a stock that is struggling. Prices trade below the 40-week moving average line. The weekly OBV line has been soft since early 2022. The MACD oscillator has turned back below the zero line for an outright-sell signal.
In this daily Point and Figure chart of RH, below, I can see that prices reached and exceeded a downside price target in the $260 area.
In this weekly Point and Figure chart of RH, below, I can see a potential downside price target in the $139 area.
Bottom line strategy: The charts of RH are weak looking and I would avoid the long side of the stock for now.
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The shares are down sharply after the retailer reported its latest earnings.
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