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
About the author:
Tom Bowley is the Chief Market Strategist of EarningsBeats.com, a company providing a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR), providing guidance to EB.com members every day that the stock market is open. Tom has contributed technical expertise here at StockCharts.com since 2006 and has a fundamental background in public accounting as well, blending a unique skill set to approach the U.S. stock market.
Learn More
