It is time to revisit Ralph Lauren Corp. (RL) .
Back on Aug. 4 we wrote that "RL made a gap to the upside but it has so far not shown us follow-through buying. RL could pull back to fill the gap and perhaps decline even further. Avoid the long side."
In the updated daily bar chart of RL, below, we can see that prices declined into early October and have since firmed. RL is now trading above the rising 50-day moving average line and the rising 200-day moving average line.
The On-Balance-Volume (OBV) line has climbed to a new high telling us that buyers of RL have been more aggressive. Sometimes the OBV line can be a leading indicator. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero line.
In the weekly Japanese candlestick chart of RL, below, we can see a bullish setup. Prices are above the 40-week moving average line.
The weekly OBV line is leading the charge with a new high. The MACD oscillator just crossed upwards to a new buy signal.
In this daily Point and Figure chart of RL, below, we can see a potential upside price target of $172.
In this weekly Point and Figure chart of RL, below, we used close-only price data and a five-box reversal filter. This is suggesting a $184 price target.
Bottom-line strategy: Before you check and see what is in your closet for the winter you could go long RL at current levels risking to $112 and add to longs above $132. The $172-$184 area is our price target.
