Long Position on RH @ $160.00 on 9/4/2018 (Momentum)

RH (RH), formerly known as Restoration Hardware Holdings, operates as a retailer in the home furnishings.

It offers products in various categories, including furniture, lighting, textiles, bath ware, décor, outdoor and garden, tableware, and child and teen furnishings.

The company provides its products through its retail galleries; and Source Books, a series of catalogs, as well as online through rh.com, restorationhardware.com, rhbabyandchild.com, rhteen.com, and rhmodern.com, as well as waterworks.com.

As of February 3, 2018, it operated a total of 83 retail galleries consisting of 16 design galleries, 47 legacy Galleries, 1 RH modern gallery, and 4 RH baby and child galleries throughout the United States and Canada; and 15 Waterworks showrooms in the United States and in the United kingdom, as well as operated 32 outlet stores throughout the United States and Canada. 

The company reports today after the close. Ahead of that, shares have formed a bullish "cup and handle" and are expected to move higher out of this formation. The earnings report should be the catalyst to get the stock out of this formation.

Entry Point: $160.00

Stop Loss: $152.00

Trading Range: $47.50 to $164.49

Target Price: $177.10

Updates

9/6/2018 11:31:34 AM

RH closed at $132

Position closed on 9/6/2018 at price of $162.00 with a 1.25% gain in 2 days.

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