Shares of RH (RH) , the former Restoration Hardware, gapped lower Thursday on the heels of the company's announcement Wednesday evening to lower their 2022 guidance. Let's check out the charts and indicators on this specialty retailer.
In the daily bar chart of RH, below, we can see a long decline in price the past 12 months. RH trades below the declining 50-day moving average line and below the declining 200-day line too. Rallies to the underside of the 50-day line since March have failed.
The On-Balance-Volume (OBV) line has chopped lower since December as traders have been more aggressive sellers of the stock. The Moving Average Convergence Divergence (MACD) oscillator is bearish.
In the weekly Japanese candlestick chart of RH, below, we can see a bearish picture. Lower shadows in May and June did not translate into a rebound rally.
The weekly OBV line has been on the defense since December. The MACD oscillator remains weak.
In this daily Point and Figure chart of RH, below, we can see a potential downside price target in the $149 area.
In this weekly Point and Figure chart of RH, below, we used close-only price data and a five-box reversal filter. A price target of $116 is shown.
Bottom-line strategy: After a long decline it would be nice to see a bottom form for RH but that is not the case just yet. Further declines are anticipated.
