Urban Outfitters (URBN) has been defying the Amazon effect during the past year, rallying from a low around $16.00 a share in mid-2017 to a high this week that cracked $52.00. However, It looks like this rally will be hard to sustain. First of all, the latest earnings report was strong. But as with many of these earnings beats, a soft guidance always becomes the caveat. ...Still, during Urban Outfitters' earnings conference call on Tuesday, management said that same-store sales gains would likely slow during the third quarter — to "high single-digits" — as comparisons against the last year's Q3 get tougher. RBC analyst Brian Tunick, in a research note on Tuesday, said Urban Outfitters "is one of the best positioned retailers to benefit from an emerging fashion cycle and strong macro" trends. But he also said growth would be harder to sustain next year, given this year's strong sales results....For Q2, Urban Outfitters' earnings per share jumped 91% to 84 cents, beating forecasts for 76 cents. Net sales rose 13.7% to $992 million, above expectations for $977 million. Same-store sales overall climbed 13%, exceeding views for an 11.2% gain. Comps at Urban Outfitters, Anthrolpologie and Free People also beat expectations...(Investors.com)URBN Daily Chart(click to enlarge)Exhaustion?- After rallying more than 300%, URBN is showing some signs of exhaustion.- Note that the overall trend still looks bullish and healthy. - However, the fact that the market faded the recent earnings-driven rally suggests it is not focused on the soft guidance and pull URBN into a consolidation or even bearish correction mode.- In fact, this bearish candle can be seen as a bearish engulfing candle, often a sign that the market has strong bearish sentiment after a period of tentativeness. - Also note that the volume was strong. This also suggests exhaustion and signals a shift in market dynamics. - I think we have some kind of regression back towards the 200-day simple moving average (SMA). - This means we should expect price to break the channel support and head back towards the $38-$40 area.