Estee Lauder (EL): Breaks out from a bottom

We received a question on Estee Lauder (EL), which we have been monitoring as a Staples stock that is bucking the sector’s broader technical weakness

We view absolute price strength confirmed by rising relative strength versus the S&P 500 as bullish, and EL enters 2026 with both absolute and relative breakouts from a mid-2024 into late-2025/early-2026 bottoming pattern. Holding the 104–100 support zone, reinforced by the rising 13-week WMA, would keep the breakout firmly in place and supports upside potential toward 152 (declining 200-WMA) and 160 (pattern objective).

If strength persists, the key Fibonacci retracement levels of the January 2022–April 2025 decline come into focus at 172 (38.2%), 211 (50%), and 249 (61.8%).

Rising 26- and 40-week WMAs confirm a bullish shift in trend and provide longer-term support in the 94–85 area.

Chart 1: Estee Lauder (EL) (top) and relative to the S&P 500 (bottom)