{"id":47,"date":"2025-03-31T17:27:51","date_gmt":"2025-03-31T17:27:51","guid":{"rendered":"https:\/\/moderncryptotrader.com\/index.php\/2025\/03\/31\/stocks-in-focus-three-charts-to-watch\/"},"modified":"2025-03-31T17:27:51","modified_gmt":"2025-03-31T17:27:51","slug":"stocks-in-focus-three-charts-to-watch","status":"publish","type":"post","link":"https:\/\/moderncryptotrader.com\/index.php\/2025\/03\/31\/stocks-in-focus-three-charts-to-watch\/","title":{"rendered":"Stocks In Focus: Three Charts to Watch"},"content":{"rendered":"
\n

This week, we get back to earnings and, sadly, the pickings are slim.<\/p>\n

Given these turbulent times, we have two Consumer Staples stocks to examine \u2014 Lamb Weston<\/strong> (LW) and Conagra <\/strong>(CAG). They may not be the most exciting charts, but they show clear levels of interest that are worth noting.<\/p>\n

There’s also the highly volatile stock Restoration Hardware<\/strong> (RH), which is trading close to a support level. This stock can be considered a high-risk, high-reward trade.<\/p>\n

Let’s dive in…<\/p>\n

Lamb Weston (LW)<\/h2>\n

Lamb Weston, best known for its iconic french fries, has gone on one of the wildest rides over the last four years. After a two-year uptrend, the stock has slowly and steadily gone on a two-year downtrend, giving back all its gains.<\/p>\n

Earnings have been quite harsh over the last four quarters. There was one gain of 2.6%, with three losses that included a -19.4%, a -28.2%, and most recently a -20.1% decline. Shares now sit 54% off of all-time highs as the company heads into Thursday’s earnings report.<\/p>\n<\/p>\n

Technically, there is some hope.<\/p>\n

Shares made a full roundabout from trough to peak and back to trough again, where they were able to find some major support. The $47.50\/$48 level was the original double bottom that started the rally years ago, and now, when re-tested, it held again.<\/p>\n

The risk\/reward set-up appears to favor the bulls, barring another epic post-earnings drawdown. If shares sell off, the $47.50 level should get tested and could be a good entry point. However, the path to least resistance looks higher from this level. A mean reversion back to its long-term downtrend around the declining 200-day simple moving average<\/a> would be good for a 23% gain.<\/p>\n

Overall shares continue to act rather soggy, but one little quarter could spice things up and lead to a quick and satisfying return.<\/p>\n

Restoration Hardware (RH)<\/h2>\n

Restoration Hardware has become one of the most volatile stocks after earnings over the last year-and-a-half and is one to watch with the report on Wednesday afternoon. Shares have moved an average of +\/- 17% over the last six reports with gains of 17% and 25.5% over the last two.<\/p>\n

Since last December’s 17% jump after results, the stock has declined as much as 50% from its recent highs. One major factor is the slowdown in the housing market, influenced by rising interest rates, which has dampened demand for home furnishings.<\/p>\n<\/p>\n

Technically, shares reached a major support level going back four years and held. It was the fourth time in four years that shares moved towards that $210 level and held. Clearly, we have a major level of interest to watch from a risk\/reward set-up.<\/p>\n

Shares hit extreme oversold levels in its relative strength index<\/a> (RSI) in early March and have finally bounced. The rally back from oversold levels and a hold of key support should favor the bulls for now.<\/p>\n

If you were to trade this into Wednesday afternoon’s earnings, you must watch that support level carefully. It has held time and again, and this would be a great area to dip into the stock with a stop-loss for protection just below support to minimize losses. Any positive reaction could see a fast snapback rally towards the 200-day moving average, which sits 35% above current levels. A simple mean reversion could equate to a nice return, while the stock remains in its longer-term downtrend.<\/p>\n

ConAgra (CAG)<\/h2>\n

ConAgra, the parent company of Duncan Hines, Birds Eye, and Slim Jim, has struggled after earnings, as it has fallen five of the last six times it has reported.<\/p>\n<\/p>\n

Technically, shares sit in the middle of a range between its 50-day and 200-day moving averages. The consumer staple has held up relatively well compared to the overall market and has only declined -4.5% year-to-date. It pays a 5.3% dividend and is considered a safer haven in these turbulent times.<\/p>\n

The $24.50\/$25 level has acted as solid support and could be a good entry point given current market uncertainty. However, the upside has overhead resistance at the 200-day moving average and the $27.50\/$28 level.<\/p>\n

Overall, this may be a nice place to hide out during turbulent times, but the overall risk\/reward is marginal, at best. It may be more rewarding to eat their products than to trade the stock.<\/p>\n<\/div>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

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