RH is oversold following the "Liberation Day" on Trump tariffs, raised investors uncertainty on whether the company will be able or not to handle the tariff rises as it's in the textile industrie.
A higher tariffs could definitly affect the business but as Trump's vision to boost the industrial side of the USA, investors will trust the long term vision of the US president despite a Q3 and Q4 disappointing earnings a next positive earning could bring back an optimistic view and confidence to investors and that could quickly recover the ephemeral sell off into a positive outlook for the next following months as RH is a 1980 established US company with a P/E ratio of 71 meaning that investors expect the company to experience significant growth in the future.
Resulting in a strong sell off out of panic. A sharp decline like this one is not sustainable and a retracement is very likely.
That brings me to seing a short term buy to the 215$ level giving almost 40% rise potential.
Converging with the technicals : Price is in a Weekly Demand zone and is oversold on the H1 RSI and almost on the 2Weeks timeframe.
A higher tariffs could definitly affect the business but as Trump's vision to boost the industrial side of the USA, investors will trust the long term vision of the US president despite a Q3 and Q4 disappointing earnings a next positive earning could bring back an optimistic view and confidence to investors and that could quickly recover the ephemeral sell off into a positive outlook for the next following months as RH is a 1980 established US company with a P/E ratio of 71 meaning that investors expect the company to experience significant growth in the future.
Resulting in a strong sell off out of panic. A sharp decline like this one is not sustainable and a retracement is very likely.
That brings me to seing a short term buy to the 215$ level giving almost 40% rise potential.
Converging with the technicals : Price is in a Weekly Demand zone and is oversold on the H1 RSI and almost on the 2Weeks timeframe.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.