Jim asked the caller why they would buy it. That did not sound positive, so we decided to check the charts today.
In the daily bar chart of LB, below, we can see that prices have been in a decline the past twelve months. Prices declined with the broad market in late 2018 and made a low in late December. Unlike the broad market, LB did not recover into the new year and prices have broken the December lows this month. The slopes of the 50-day and 200-day moving averages are bearish.
The On-Balance-Volume (OBV) line is bearish, and there are no bullish divergences from the 12-day price momentum study.
In the weekly bar chart of LB, below, we went back five years to show the long downtrend from 2015. Prices are below the declining 40-week moving average line.
The weekly OBV line is bearish and the Moving Average Convergence Divergence (MACD) oscillator has been below the zero line for more than the past year.
In this weekly, close only point-and-figure chart of LB, below, we can see a downside price target of around $16.
Bottom-line strategy: The Victoria Secret models may become depressed, with no bottom in sight for the LB share price.