Shares of Restoration Hardware (RH) continue to trade near all-time highs above $458.00. This home furnishing retailer has yet to see any impact from the impending reopening trade. That is where the Restoration Hardware strong sell short trade comes into play. If you look at retailers like Best Buy (BBY), Lowes (LOW), Home Depot (HD), they have all started to pull back as a vaccine for COVID-19 gets closer. Arguably, by the end of the first quarter 2021, life will be getting back to normal. The home office, while still used more than it was, won’t be the ‘thing’ to build out anymore. Families will be out and about and not focused on making their home updates any longer. This means that Restoration Hardware will see an epic short fall in revenue in the first and second half of 2021. With price up from the March 2020 level of $75.00 to its current $458.00+, this has epic downside. The Restoration Hardware strong short trade setup makes total sense and the technical chart analysis backs it up. The RSI is near 70 and volume is declining as buyers dry up.
The Restoration Hardware downside targets are easy to find. There is a major gap fill at $321.70 as target 1 and a major pivot at $257.00 as target 2. Target one should be hit by early 2021, target 2 by late 2021. This stock will soon see the reopening trade selling take hold soon. Look for those downside targets.
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Restoration Hardware strong sell short trade targets shown below…