Viewers of Mad Money Friday night got to hear about Jim Cramer's game plan for this week. On Tuesday, we'll get a bevy of earnings from some companies thriving under the pandemic, such McCormick (MKC) , Lululemon Athletica (LULU) and Chewy (CHWY) , and others that have struggled, including PVH Corp. (PVH) .
The last time we checked out PVH was on Jan. 8 where we wrote that, "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."
Let's check out the latest charts of PVH.
In the updated daily bar chart of PVH, below, we can see that the shares have corrected sideways since our early January review. Beneath the surface the indicators have strengthened.
The On-Balance-Volume (OBV) line may be leading the price action and has already made a new high for the move up and tells us that buyers of PVH have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is slightly above the zero line but looks ready to turn upward to a new buy signal.
In the weekly Japanese candlestick chart of PVH, below, we can see a number of upper shadows on approach toward the $110 level. Last week's candle pattern could be a bearish hanging man. Bearish confirmation would be needed this week to mark a top reversal. The slope of the 40-week moving average line is positive.
The weekly OBV line shows a little weakness in March but the overall pattern is positive. The MACD oscillator has narrowed dramatically. From here we could see either a turn higher or a turn lower. It all depends on the price action in the days ahead.
In this daily Point and Figure chart of PVH, below, we can see a potential upside price target in the $124 area.
In this weekly Point and Figure chart of PVH, below, we can see a potential upside price target in the $153 area.
Bottom-line strategy: PVH might continue trading sideways for a few more weeks if the broader market is weak. Traders should be ready to buy a rally to $104 risking to $90. Add to longs above $110. Our targets are $124 and then the $153 area.
