Restoration Hardware - RH
Entry: $167.01
Target: #1 $175 prior peak, #2 >180 and $200 could come quick (top of channel)
Like the next trade, ROKU, RH is highly mis-understood by the market. With roughly 30% of the float short, I’d say there’s some confusion on the business model opportunities. You can read my long-term view of the stock on the dynamic brands tab of this site but from a short-term perspective, RH offers a nice long opportunity from a trading perspective. Over time this is a $10B market cap company, now currently $3.2B so lots of potential upside.
I like taking advantage of this small pullback under $170 to add here at $167 for at least a ride back to the recent high of $175 but over that and the shorts should feel really uncomfortable because that squeeze could be quick to $200.
10/7/2019
RH hit $177 today so that’s a nice gain of 5.9% in crazy market, I’ll take it. I still believe this has much bigger gains next year but this is a trading site.
