When we last looked at RL on Sept. 23 we wrote that, "RL is among many companies who are trying to recreate themselves. While I am rooting for RL, the charts suggest we could see further near-term price weakness and a widening of the longer-term sideways pattern."
Let's check out the RL charts again to see what is happening with the stock now.
In the updated daily Japanese candlestick chart of RL, below, we can see that the shares did in fact widen their sideways pattern and didn't break out of the sideways pattern until November. Prices have rallied into March but the 12-day price momentum study in the bottom panel shows lower highs from early December to now. This tells us that the pace of the advance has slowed. This is also a bearish divergence with prices going up but the indicator going down. This can sometimes foreshadow a downside reversal.
The On-Balance-Volume (OBV) line became stalled in February and is a minor bearish divergence.