Restoration Hardware (RH) is taking a beating this morning after slashing its guidance dramatically lower. The stock was already trading at muli-year lows but after this bearish news, will trade at all time lows.
Traders should be looking at accumulation below $25.00. The stock is currently trading at $29.12, down -6.95 (-19.25%) premarket. There is no reason to jump on this until it flushes out. Multiple technical support factors start to emerge at/below $25.00.
The big question on RH is whether this is company specific or a sharp weakening sales trend in the industry. If it is, then Home Depot HD may be the play on a short trade. Home Depot is currently trading just off 52 week highs at $129.59.
This is worth a close watch and I will be picking up some RH after a bit more flush and watching the sector for overall signs! :)
Traders should be looking at accumulation below $25.00. The stock is currently trading at $29.12, down -6.95 (-19.25%) premarket. There is no reason to jump on this until it flushes out. Multiple technical support factors start to emerge at/below $25.00.
The big question on RH is whether this is company specific or a sharp weakening sales trend in the industry. If it is, then Home Depot HD may be the play on a short trade. Home Depot is currently trading just off 52 week highs at $129.59.
This is worth a close watch and I will be picking up some RH after a bit more flush and watching the sector for overall signs! :)
how I will trade $RH on the massive drop...
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