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 - $290Holding this level = potential bounce to $319+ (Bullish)
    Breaking this level = potential drop to $258 (Bearish)