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- 1 Ralph Lauren Corp. stock price has surged by 21.66% since the start of June, rising from the low of $103.17.
- 2 RL stock price trades above the 20,50,100 and 200-day EMAs.
- 3 The year-to-date return of Ralph Lauren is 17.21%.
RL stock price experienced a surge after nose diving near the yearly lows and forming support at $105 for embarking on a bullish rally. Since the start of 2023, the stock price was lingering between the range of $105 and $128. During the start of June, it finally gained enough bullish momentum to shatter the major resistance level of $128.
However, the bullish move was not sustained and was halted at $132. The price faced strong rejection from $135 and bears entered the market to push the price back into the zone. The last bullish candle did break the 3-day losing streak of Ralph Lauren.
RL stock has soared from $89 to $125.99 in the last six months, thereby surpassing the returns of broader indices such as S&P 500. Shares jumped 5% after the release of Quarter 4’s results. Net revenue saw a growth of 1% year-over-year to $1.54 billion.
Key Drivers Of Ralph Lauren Share Surge
Ralph Lauren’s premium pricing strategy has been a key contributor to the company’s success. In the quarter that ended on April 1, there was an impressive increase of 12% in the average selling price compared to the same quarter in the previous year. The company has increased the average selling price by 77% in the past five years, which is remarkable.
Ralph Lauren has also been expanding its digital and omnichannel capabilities and has been investing in omnichannel integration and mobile technology. The brand activation was also successful, which includes sport sponsorship at the Australian open and the lunar new year campaign.
The next earnings report is to be released on August 8. The consensus has estimated the revenue to be $1.482 billion and the earnings per share (EPS) to be $2.13. There has also been an insider selling of the shares by Patrice Louvet, who sold 9,272 shares worth $1,159,000. Patrice Louvet has control over 193,060 shares overall.
Will RL Stock Retest Annual High Of $132.66?
The stock price traded above the 20,50,100 and 200-day EMAs, implying that there is bullish momentum in the price. The 20-day EMA has been acting as a support. Chaikin money flow score is 0.15, suggesting strength in the market and a higher chance of retest. RSI has dipped after touching the overbought zone. RSI traded at 57.78, hinting that the price still possesses bullish momentum.
Conclusion
The market structure and price action of Ralph Lauren is bullish but after the rejection from $132.50, the price has started to slip. Technical parameters are favoring the buying side as the price has corrected the bullish move and formed a support. It might retest the annual high and potentially rise higher.
Technical levels
Major support: $118.50 and $105
Major resistance: $132.50 and $135
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
