Is Estee Lauder stock reversal just putting lipstick on a pig?

• Posted by Greg Harmon
• on October 8th, 2015

Estee Lauder ($EL) started 2015 off with a bang. the stock moved higher in February and then just continued to trend higher for the next 6 months. Then the market sentiment changed and it sold off with the broad market. The bounce in the market that followed was not see in Estee Lauder though. its price just continued to move sideways.

But then it did start to move up last week, ending over the 200 day SMA for the first time since August 20th. It has held over that level, consolidating since. Thursday looks to print a bullish candlestick though. And it has support to continue higher from the rising RSI and MACD. The Bollinger Bands are also opened to the upside.

Finally, the Andrews Pitchfork shows a move up off of the Lower Median Line, and now a clear path to the Median Line above. A break of this consolidation would trigger a target from a Measured move higher to about 89. This would be just over the Median Line were it to happen in a just a day or two. Looks like this pig is for real and heading for a night on the town.

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