The Developing Year-Long Base Formation Anticipates RH Upgrade to GS Conviction Buy List

Yesterday's (Aug 18) Goldman Sachs (GS) Research upgrade has goosed the stock by nearly 10% this morning, which also propels Restoration Hardware Holdings, Inc. (RH) above June-August resistance at 32.00, and unleashes the upside potential to 36.30/60 and to 39.00-40.00 implicit in the combustion out of its multi-month base formation.

While RH is considered to be a takeover target, the GS upgrade certainly caught short-sellers by surprise, and likely increases speculation about potential M&A activity in the near future.

GS research lifts the RH brand out of the dungeon, and breathes new life into the name. I remain long at 31.01 for The Model Portfolio.

  Matched “”
x
Take Advantage Of Our Free
7-Day Trial, $71st Month Offer!
  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!