Saturday, August 1, 2015

Estee Lauder Companies Inc (NYSE: EL)

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:
1-year chart of Estée (NYSE: EL)
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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