Urban Outfitters, Inc. (NASDAQ: URBN)

Urban Outfitters, Inc. engages in the retail and wholesale of general consumer products and operates in two segments, Retail and Wholesale. The company operates retail stores under the Urban Outfitters, Anthropologie, Free People, Terrain, and BHLDN brands. Its Urban Outfitters stores sell women's and men's fashion apparel, footwear, accessories, and gifts, as well as apartment wares, such as rugs and pillows to young adults aged 18 to 28; and Anthropologie stores provide women's casual apparel and accessories, shoes, gifts, decorative items, and home furnishings to women aged 28 to 45. The company's Free People stores primarily offer Free People branded merchandise mix of casual women's apparel, intimates, shoes, accessories, and gifts to young contemporary women aged 25 to 30; Terrain stores provide lifestyle home and garden products, antiques, live plants, flowers, wellness products, and accessories, as well as landscape and design service solutions; and BHLDN store offers a range of wedding collections consisting of wedding gowns, bridesmaid frocks, party dresses, assorted jewelry, headpieces, footwear, lingerie, and decorations.
To review Urban's stock, please take a look at the 1-year chart of URBN (Urban Outfitters, Inc.) below with my added notations:
Over the last nine months URBN has been stuck within a common pattern known as a rectangle. Rectangle patterns form when a stock bounces between a horizontal support and resistance. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. URBN's rectangle pattern has formed a $44 resistance (red) and a $38 support (blue). The stock has fallen back down to support, and considering its move against the rally of the overall market, may be looking to break lower.
The Tale of the Tape: URBN has formed a rectangle pattern. The possible long positions on the stock would be either on a pullback to $38, or on a breakout above $44. The ideal short opportunity would be on a break below $38.
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