Fri 19'th Jan 2018
Ralph Lauren Corporation Stock Analysis
Technical stock analysis for Fri 19'th Jan 2018
|Shorts||7.31% ( 2017-12-29 )|
|Cash||4 542.6 mill|
|Loans||2 329.3 mill|
Ralph Lauren Corporation has broken the strong rising the short-term trend up and an even stronger rising rate is indicated. For any reaction back there will now be support on the roof on the current trend broken at $112.37, a level that may pose a second chance to hit a runner. According to fan-theory $122.41 will be the next possible trend-top level and thereby pose a resistance level which may not be broken at the first attempt.
Only positive signals in the chart today. Ralph Lauren Corporation holds buy signals from both short- and long-term moving averages. In addition, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down there will be some support from the lines at $107.25 and $101.58. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Tuesday January 16, 2018, which indicates further gains until a new top pivot has been found. Volume fell during the last trading day despite gaining prices. This causes a divergence between volume and price and may be an early warning. The stock should be watched closely.
Relative Strength Index (RSI)
The stock holds a RSI14 at 74 and is currently being overbought on RSI. This does not have to be a sales signal as many stocks may go both long and hard while being overbought on the RSI. It is therefore important to evaluate the history of the share as it may tell you something about the RSI-sensitiveness.
Support & Resistance
On the downside, the stock finds support just below today's level from accumulated volume at $91.73 and $90.67. There is no resistance from accumulated volume above today's level and given the right condition the stock may perform very well during the next couple of days.
There is natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Ralph Lauren Corporation finds support just below today's level at $91.73. If this is broken, then the next support from accumulated volume will be at $90.67 and $89.56.
This stock is usually traded at good volume, and with minor daily changes the risk is considered to be low. During the last day, the stock moved $3.17 (2.89%) between high and low. For the last week, the stock has had a daily average volatility of 2.73%.
The stock is extremely overbought on RSI14 (74). Normally this will pose a good selling opportunity, but since the stock has broken the trend up the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.
Our recommended stoploss: $109.00 (-3.35%) (This stock has medium daily movements and this gives medium risk. The RSI14 is 74 and this increases the risk substantially. There is a buy signal from pivot bottom found 3 days ago.)
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Ralph Lauren Corporation holds several positive signals and has broken the strong rising trend up. As the stock is also in great technical shape, we therefore consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months.
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