RH testing supports from May; look for upward triangle breakout

Restoration Hardware, which gapped upward on an earnings surprise a few days ago, has been in a sharp downward triangle ever since. Today it's testing a support zone from about 105.30 to 109.60. I wouldn't be surprised to see an upward breakout from the triangle, especially considering the strong retail sales report the Commerce Department released. To be honest, I'm a little surprised RH has stayed in its triangle at all today.

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We have a triangle breach. Expect resistance at each round-number dollar value all the way up to $115. Even in the most optimistic scenario, I wouldn't expect to move higher than $117.50. We're already meeting resistance at $108.

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We did better than I thought we'd do today. We blew right through the lesser resistance levels but met stiff resistance at $112.