The Estée Lauder Companies Inc. manufactures, markets, and sells skin
care, makeup, fragrance, and hair care products worldwide. The
company’s skin care products include moisturizers, serums, cleansers,
toners, exfoliators, acne and oil correctors, sun care, and eye and body
care products; and makeup products consist of face, eye, lip, and nail
products, as well as related items, such as compacts, brushes, and other
makeup tools. It also offers fragrances products for women and men in
various forms, including eau de parfum sprays and colognes; lotions,
powders, creams, candles, and soaps; and hair care products comprising
hair color and styling products, shampoos, conditioners, and treatment
and finishing sprays.
Take a look at the 1-year chart of Estée (NYSE: EL) below with added notations:
EL has been trading sideways for the last 3 months, while forming a
common pattern known as a rectangle. A minimum of (2) successful tests
of the support and (2) successful tests of the resistance will give you
the pattern. EL’s rectangle pattern has formed a $90 resistance (red)
and a $86 support (green). A break above $90 would also be a new
52-week high.
The Tale of the Tape: EL is trading within a
rectangle pattern. The possible long positions on the stock would be
either on a pullback to $86, or on a breakout above $90. The ideal short
opportunity would be on a break below $86.
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