LULU pops to highest close ever
lululemon athletica inc. (LULU) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
LULU finished the week 4.48% higher at 254.41 after edging higher $0.55 (0.22%) today, slightly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Today's close at 254.41 marks the highest recorded closing price ever. Trading $1.32 higher after the open, the market was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on February 7th, LULU actually gained 2.07% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (LULU as at Feb 14, 2020):
Friday's trading range has been $2.85 (1.12%), that's below the last trading month's daily average range of $4.27. Things look different on the weekly timeframe, where the market's trading range of the last week has been above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for LULU.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical resistance level at 256.80 (R1).
Crossing below the upper Bollinger Band, prices have lost at least some of their upward momentum in the short-term and might now be heading back down towards the mean of the Bollinger Bands at 245.11.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 256.80 where further buy stops might get triggered.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Bearish Intraday Reversal" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for lululemon athletica. Out of 387 times, LULU closed higher 52.97% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 59.69% with an average market move of 1.92%.