RH (RH) , formerly known as Restoration Hardware, is set to report its latest quarterly earnings figures Wednesday after the market close. Let's inspect things again.
We were bullish on RH back on July 1 but things have changed.
In the daily bar chart of RH, below, we can see that the shares have largely traded sideways since late April. Prices have been crossing above and below the 50-day moving average line.
The daily On-Balance-Volume (OBV) line has churned sideways since April. The Moving Average Convergence Divergence (MACD) oscillator made a peak in early May and is now close to the zero line telling us there is not much in the way of "trend strength."
In the weekly Japanese candlestick chart of RH, below, we can see that prices have had trouble above $700. Prices are still above the rising 40-week moving average line but they have been stalled.
The weekly OBV line is neutral and the MACD oscillator is weakening.
In this daily Point and Figure chart of RH, below, we can see that the shares have reached a downside price target of $656. This does not mean that prices will hold or rally.
In this weekly Point and Figure chart of RH, below, we can see a downside price target in the $576 area.
Bottom-line strategy: RH may see higher highs in 2022, but in the short-run looks a little soft and traders may want to consider reducing their long exposure.
