Ross Stores ( ROST) reported disappointing earnings numbers and revenue figures Thursday evening and also lowered their guidance for the fiscal year. A bad combination of fundamental news. Share prices are down sharply in early trading Friday, so let's check with damage control.
In the daily bar chart of ROST, below, we can see the past 12 months of weakness. Prices made a low in March but early indications for ROST Friday suggest we could open well below there in the $67 area. Prices are already below the declining 50-day moving average line and below the declining 200-day line.
The On-Balance-Volume (OBV) line was pointed down ahead of earnings telling us that sellers were more aggressive. The Moving Average Convergence Divergence (MACD) oscillator is bearish. 
In the weekly Japanese candlestick chart of ROST, below, we can imagine Friday's large downside price gap that will bring prices down in the vicinity of the early 2020 low. The slope of the 40-week moving average line was already negative and the OBV line was in a decline from early 2021.
The MACD indicator is bearish too.
In this daily Point and Figure chart of ROST, below, we can see that prices reached and exceeded a downside price target in the $94 area.
In this first weekly Point and Figure chart of ROST, below, we used close-only price data. Here we can see that prices reached a target of $91.
In this second weekly Point and Figure chart of ROST, below, we used close-only prices with a five-box reversal filter. Here the software suggests a $56 price target.
Bottom-line strategy: Similar to some other retailers that have recently reported earnings and revenue numbers, traders have rushed to dump their holdings. ROST will need to make a low and build a new base pattern before we suggest a long recommendation. Avoid the long side for the weeks and months ahead.
