RH Stock at Critical Support: Rebound or Further Breakdown?
RH has experienced a sharp sell-off, breaking down from its recent highs.
The price is currently testing the lower trendline of the long-term rising channel.
Bull Case
Support at $281 - $289 Holding:
The price is currently sitting at the lower boundary of the ascending channel.
If buyers defend this level, a bounce toward $320 - $350 is possible.
Oversold Conditions:
RSI at 34.33 suggests it is nearing oversold territory.
Stochastic at 9.88 also signals that selling pressure may be exhausted.
If price stabilizes here, it could attract dip buyers.
Resistance Levels to Watch:
$319: First major resistance for a recovery.
$330 - $335: Strong volume resistance where sellers might step in.
Bear Case
Break Below $281 Support:
A confirmed breakdown could accelerate the decline toward $258 , $240.
This would indicate a possible trend reversal from bullish to bearish.
Factors contributing to Bearish:
Price action shows strong selling pressure.
Moving averages sloping downward, signaling a potential continuation of the downtrend.
RSI has been trending lower without divergence, meaning no strong signs of a reversal yet.
Neutral to Slightly Bearish
If $281 holds, a bounce could be expected.
If it breaks down, further sell-off to $258, $240 is likely.
Key Decision Zone: $281 - $290
Holding this level = potential bounce to $319+ (Bullish)
Breaking this level = potential drop to $258 (Bearish)
