What is Happening to the Share Price of RCG Corporation Ltd?

What does RCG Corporation Ltd do?

RCG Corporation Ltd [ASX:RCG] dominate the active lifestyle sector, owning and operating a large number of footwear and apparel businesses. Just some of their popular brands include The Athlete’s Foot, Dr Martens, Saucony, Timberland, Vans.

That’s interesting, but what is the chart telling you?

What does the chart look like?

I personally find it helpful to bring up a chart. Here’s the daily chart of RCG:

RCG Corp Graph

Source: STEX

The big break upwards in mid-March was the announcement to the market of the acquisition of the New Zealand company, Accent Group. The purchase of Accent now makes RCG a regional leader in the retail sector of branded footwear. Since the announcement of the acquisition, shares have continued higher.

The chart is suggesting the company’s business model is satisfactory at present. As for the future, a break of the prior lows, or, conversely a break over the prior tops, will tell you what the future holds for this company.

Are RCG shares a buy?

Footwear has an element of non-discretionary spending about it, shoes need to be replaced due to wear and tear and children’s shoes need to be replaced regularly, so it’s a reasonably resilient sector.

As for RCG shares, the market will tell you if they are a buy or not. We just have to wait and see.

If that is unclear to you, then you need to go here and learn how to read a chart.

Not next week, not tomorrow, but now. You must come to the understanding that the weight of money will tell you what the future holds for RCG Corporation.

Cheers,
Terence Duffy,
Research Analyst, Cycles, Trends and Forecasts

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Terence Duffy is an analyst and chartist, specialising in researching economic trends and cycles.  His primary focus is housing and land affordability. But you can also depend on him to offer his unique analysis of stock market charts. As Terence will show you, the charts often forecast, well in advance, the good or bad news to come — which he details in Cycles, Trends and Forecasts.


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