LULU closes higher for the 2nd day in a row
lululemon athletica inc. (LULU) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, LULU ended the month 3.97% higher at 312.01 after surging $17.66 (6.0%) today on high volume, strongly outperforming the S&P 500 (1.54%). This is the biggest single-day gain in over three months.
Daily Candlestick Chart (LULU as at Jun 30, 2020):
Tuesday's trading range has been $14.12 (4.63%), that's above the last trading month's daily average range of $10.97. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for LULU.
The stock managed to close back above the 20-day moving average at 306.51 for the first time since June 18th. When this moving average was crossed above the last time on March 25th, LULU gained 3.71% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
With prices trading close to this year's high at 324.76, upside momentum could accelerate should the share be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for lululemon athletica. Out of 317 times, LULU closed higher 50.79% 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 61.20% with an average market move of 1.79%.