During the move higher in the first half of the year, the Polo Ralph Lauren stock (NYSE: RL) gained around 30% from its 2019 opening price, at 100.28. But in the beginning of May, RL took a strong hit, which wiped out all the gains and led the price to the 82.63 zone, that acted as a strong support. From there, the stock changed its course and set sail north and yesterday it once again managed to climb back into the positive territory for the year. Everything looks positive for RL, but in order for it to continue in the upwards direction, a break of the 103.72 barrier is needed. This is why for now, we will remain cautiously-bullish and wait for a confirmation break of that level.
As mentioned above, if the price breaks above and closes a daily candle above the 103.72 hurdle, which is the highest point of September, this would confirm a forthcoming higher high and the stock might drift further up. We will then target the 107.12 obstacle, a break of which may clear the path to the 112.45 zone, marked by the high of July 30th.
Looking at our oscillators, the RSI and the MACD, both are showing an increase in the upside momentum of the price, which could lead the stock to some higher levels. The RSI is above 50 and points upwards. The MACD is above zero and its trigger line, and also is pointing higher.
Alternatively, for us to start examining the downside again, a price-drop below the 93.93 area, marked by the low of October 31st, is required. In addition to that, a break of a short-term tentative upside line taken from the low of August 26th, could support even more the idea of a possible slide lower. This is when we will aim for the 87.69 obstacle, a break of which could test the lowest point of this year, at 82.63.
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