Is RH Stock Likely To Underperform Through 2026?

Author: Shivank Goswami | September 15, 2025 05:44am

RH (NYSE:RH) is currently in Phase 18, the final stage of its Adhishthana cycle on the weekly charts. The stock has been range-bound for over 1,000 days, leaving investors wondering why it remains stuck in a prolonged slump. Here's how the Adhishthana principles explain RH's position and what lies ahead.

RH and Its Adhishthana Cycle So Far

Throughout its cycle, RH has shown strong alignment with the Adhishthana Principles, our proprietary model blending behavioral archetypes and quantitative signals to anticipate market movements and inflection points.

• The stock accurately formed its Cakra during Phases 4-8.
  
• It broke out in Phase 9, triggering the Adhishthana Himalayan Formation.
  
• That formation played out precisely to the bar, validating the framework.

The outlook began to shift, however, once RH entered Phase 14. According to the principles, Phases 14, 15, and 16 collectively form the Guna Triads. These determine whether a stock can achieve its Nirvana in Phase 18, the highest point of the cycle.

For a Nirvana move to occur, the triads must display Satoguna: a clear, sustainable bullish move.

What went wrong for RH?

Across its triads, RH failed to register any clean bullish runs. While brief rallies emerged, they were consistently sold into toward the end. The absence of Satoguna signaled early that RH was unlikely to attempt a move back toward its all-time highs in Phase 18.

That expectation has played out. Since entering Phase 18, RH has fallen from the $450 levels to the $150 zone. It now hovers near the $200 range in a prolonged consolidation, which is likely to persist until Phase 18 concludes in March 2026.

Investor Outlook

With a weak Guna Triad behind it, RH is completing Phase 18 without achieving Nirvana. The stock is expected to remain range-bound through March 2026.

• Long-term buyers may want to consider the extended timeline of underperformance before treating RH as a value play.
  
• Options traders could explore range-bound credit spreads. The options open interest has already been building on the stock's deep OTM calls and puts, suggesting the market is pricing in continued consolidation.

Also Read: Why Toro Stock Isn't Breaking Out Anytime Soon 

Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga's reporting and has not been edited for content or accuracy.

Posted In: RH