Ralph Lauren Corp. (RL) is due to report earnings on Tuesday so let's check out the charts and indicators ahead of time to see if we can glean any insights on how investors or traders are positioned.
In this daily bar chart of RL, below, we can see that prices have lost ground over the past 12 months. We do have a recovery phase from late December to early May but prices are back below the declining 50-day and weak 200-day moving average lines.
In June we can see that a bounce failed at the underside of the declining moving averages which is never a good sign in my book.
The daily On-Balance-Volume (OBV) line has been weak the past year telling us that sellers of RL have been more aggressive. In the past two months leading up to the earnings release tomorrow the OBV line has been uninspiring which suggests investors may not be anticipating an "earnings beat".
The Moving Average Convergence Divergence (MACD) has been below the zero line since early May.
In this weekly bar chart of RL, below, we can see that prices are below the declining 40-week moving average line. The weekly OBV line has lost ground this year and the longer time frame MACD oscillator is bearish.
In this Point and Figure chart of RL, below, we can see a distribution pattern (selling) and a potential downside price target of $97.36.
Bottom line strategy: I have no special knowledge of RL's business nor their earnings but the charts suggest that prices are likely to work lower in the weeks ahead.