This morning, Loop Capital downgraded Urban Outfitters (URBN) from Hold to Sell and lowered their price target from $16 to $14. Like many retailers, URBN is struggling with operational disruptions due to the COVID-19 pandemic. Let’s review our weekly cycle analysis.
Urban Outfitters (URBN) Weekly Chart – annotations by askSlim.com
At askSlim.com we use technical analysis to evaluate price charts of stocks, futures, and ETF’s. We use a combination of cycle, trend and momentum chart studies, on multiple timeframes, to present a “sum of the evidence” directional outlook in time and price.
askSlim.com Technical Briefing: The weekly cycle analysis suggests that URBN is in a declining phase. The next projected intermediate-term low is due in September. Weekly momentum is negative.
On the upside, there are intermediate-term resistances from 18.98 – 23.12. On the downside, there is cycle low support at 12.28. For the bulls to regain control of the intermediate-term, we would need to see a meaningful rally above 26.07 to repair some of the damage done to the downside.
askSlim.com Sum of the Evidence: URBN is in a declining phase with negative momentum. Given these conditions, we would expect rallies to fail in the intermediate-term resistances beginning at 18.98. There is a likelihood that the stock tests the key cycle low support at 12.28 by September.
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