Buy zone and targets for $rhWhat i think will happen to $RH in the next fews days.
(not finacial advice)
RH trade ideas
$RH: Preparing in a symmetrical triangle to breakout of pre ATHYou might declare this as a "cup" formation. I would regard this as a symmetrical triangle. It has already exceeded pre corona all time high but kind of sticks to it. It oscillates around it. Volume is declining and there for consolidating.
Depending on your preference you can play as a (A) pro-cyclical (momentum) trader or a (B) anti-cyclical trader.
(A) setup:
Target: $ 265 / $ 290 / $ 300
Entry: $ 260
Stop Loss: $ 251
(B) setup:
Target: $ 265 / $ 290 / $ 300
Entry: $ 250
Stop Loss: $ 246
beat earnings still overvalueeventhough it beat earnings this thing is not where it supposed to be. add to that being severly overbought , this name can start to be shorte at the open. make no mistake this parabolioc rally is outstanding. its not of my interest to call tops but this is a reasonable place to open shorts, make sure you are 2+weeks out. at least. good luck
RH - Harbinger of tings to comeEarnings will suck for every company this quarter... expect similar results from virtually every company.
Hopefully the VIX goes down some more so options get cheaper.
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RH ShortIt's gonna be just a one day play, had to short something I guess, bad habits die hard.
RH isn't tied to any indices.... and I'm flipping these puts tomorrow, win or lose.
RH - Update 2 continuationWe continue to review the chart of RH, this time across multiple time frames
Please read my previous posts on RH as well as a lot of pints are covered on what is view that has been forming over the last few sessions
The negative news from China because of the deadly virus has affected the stock markets too (we pray for the well-being of all mankind)
RH is one of the stocks that would benefit a lot from the positive news from China.
In the above context, you could see some reasons why the
If you see the daily time frame chart, you can see, that the most recent 30 min chart also confirms a sideways market
On the 30 min chart, we can 219.25 is acting as a nice support level and there is strong resistance at 228.40 levels and 229.76. Price will also get resistance at 224.21 on 30 min charts
A close look at the daily charts will suggest the below
1. Imp Support at 219 levels and the next support that’s strong is then at around 209 levels
2. 229 level has been an important zone last year and has been acting as an importance resistance zone this year
Look out for my new post on CQQQ (china fund) to see more on what to expect on the china Tech front) proxy to how china could move
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Cheers
Trade Journal: Long RH - 1/16/2020I started a position on RH based on some nice patterns on the Daily Chart. RH had been in a pullback phrase after making new all time highs in December. On 1/13/2020, RH pulled into and rejected two different key support levels - the 50% Fibonacci Retracement level and the 50DMA Pivot. A hammer also forms on the 30m timeframe where these two key levels are rejected. I initially wanted to go long when RH rejected this key level, however the R:R was not favorable at the time. Today I went long when RH broke out and consolidated above the Flag Pattern on the daily chart. I plan to take profits at all time highs and move stop to breakeven after taking profits.
Entry - 222.19
Stop Loss - 216.50
Target 1 - 240
Target 2 - 250
RH - Update 1NYSE:RH
Update on price action on RH, as promised, we are tracking tis very closely as this trade, I feel, I has good potential and we are nearing an inflection point
I have laid out a series of price points which in the history of the stock price movement have acted as support/ resistance and its good to know these levels as important areas of congestion and times to have appropriate risk management tools around it
For those who have not read my previous posts on RH, lines covered in Red are past Res/ Sup lines. Important lines are :
1. CLOSE Above $229.64 (Previous price action high, signaling momentum in favor)
2. CLOSE Below $219.34 will negate our proposition to go long for the time being (previous low of most recent price action)
3. $244 would be the first target which may act as resistance levels ( previous peak)
4. $270 levels may be the 2nd target on the charts
I have also drawn a trend line when the stock moved into uptrend from mid 2019
In Nov 2019. The price broke below the trend line suggesting uptrend maybe over , however, it turned out to be a fake break out, hence the need to the price retesting and being rejected in important for a conservative trader
In the months of Nov and Dec, we saw price moving back above the trend line and find ing support in Dec 2019, with a nice bounce off the trend line.
At the end of Dec 2019, price again moved out below the trend line again and is trying to test the trend line again. Price can either be rejected from these levels or this could also be a fake break out.
The break out above 229.64 is critical on both fronts, it pushes us above the most recent price action high , as indicated in the charts and also pushes us above the trend line
Lets look at yesterdays price action: 17th Jan 2020
Bears, knowing that trend line has been broken, opened the day lower than previous day closing, suggesting their intention clearly that they wish to pull the prices further down. Bulls, however wanted to prove their supremacy and wanted to show their command on the field and pushed prices upwards.
Price made an intra-day high of $229.70,, which is above our entry point, however, couldn’t sustain the bears attack and bulls lost command, with price ending lower and the candle closing in red!
Its so important to look out for the close of the candle (in our case, close of the day, to be above our entry point. Yesterdays Intra-day highs could have given us wrong entry points.
Think about it this way. The reason to chose $229 levels as our entry point to buy on a future date, when the price was at $221 levels, was to have a day close above 229 to signify that a new high in recent price data has been made and previous highs may become support and also get a chance to review the candle on closing to identify strength of the market participants
In case we were to put a limit order and would have entered our position yesterday and order being executed, we would not have got a chance to review the candle.
Food for thought : This is just the beginning. What do you think. Who will win this battle between the bulls and bears. pLease share your comments below, it will be nice to hear your comments
Cheers
RH - positive and likely uptrend continuation - cyclic toolsNYSE:RH
This time its time to look at RH
RH has been moving upwards and forming an uptrend since early June 2019.
A quick look on the chart and we can establish a few key support/ resistance lines
Support 1 : 218.23
Support 2 : 206.60
Support 3 – 192.12
Support 4 : 171.34
Resistance – Stop buy entry level : 228.72
Resistane 2: 243.84
There seems to be chart formation happening. On breakout above 229, one could expect a continuation of trend
Upward Price target- 270
Interestingly, price seems to be making a trough or a intermediate corrections on the trend every 14 days. If this is the case, then yesterdays price close could be a near time low for the 14 day cycle. Next important day to look for is 30th Jan and then 13th Feb 2020 for next low on the cycle.
Interesting times ahead given that US and China trade wars seems to be moving in the positive direction
Please note this is not an offer to advisory, please consider account size and risk management tools
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RH - buy set upThis is a continuation of my previous chart. I am providing an update and will do that regularly on this chart as this is a set up stage and we are in a very interesting timezone for this stock.
The important number for us to look for closing price on this chart is 219.39 on support and 229.64 for positive breakout confirmation.
Price opened at 221.83 quickly fell to a low of 218.22, but the bulls pulled the prices higher and the day closed stronger at 223.28
The area we find ourselves is a strong congestion zone where we have seen price finding a lot of small real bodies floating around signaling lack of control on either side. Traders have felt confused with the lack of clear direction and as expected, volume in this zone of trading has been lower than normal.
Lets’ look ahead, I have my eyes on the magic number of 229.64 for a breakout to seek further action for my upside target
Target 1 : 244
Larger 2 : 270-275 levels
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RH Possible Short OpportunityDescending Triangle. Lower Highs longer term vs the . Started with a bearish harami.
RSI stuck in the middle.
MACD is looking to turn positive on the daily, but without anything to really boost it, it could be short lived. 2 hr and 4 hr MACD are both looking weak 2 hr with a pop of strength just now, 4 hr still looking for red. Weekly MACD is also looking to go red.
May see a fake out on daily temporarily.
Being around ATH not a lot to draw on for supports, what I can find are the dashed lines. $189.91 with minimal support, $173.93 with much more support and just follows gap fill at $175 and change.
This is not advice.
Fakeout over next day or 2 is entirely possible then a drop to or below support at $207. If it proves to be a descending triangle, would expect it to break below. $228 and change would invalidate the lower highs and possibly the triangle.
