Don't Ignore This Chart!

Restoration Hardware (RH) Poised For A Breakout

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Restoration Hardware (RH) engages in the retail of home furnishings.  Over the past three months, the home improvement retail index ($DJUSHI), to which RH belongs, is down more than 4% while RH consolidates ahead of what could be a triple top breakout.  As a result, RH is showing solid relative strength vs. its peers of late and is doing so with nice volume trends in play.  A close above 100 on above average volume would represent a very bullish development with a target close to 125.  The rising 20 week EMA has been providing solid support during pullbacks.  Here's a look at the weekly chart from the past three years:

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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