LULU runs into sellers again around 326.28
lululemon athletica inc. (LULU) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
LULU finished the month 4.35% higher at 325.59 after gaining $1.93 (0.6%) today, slightly underperforming the S&P 500 (0.77%). Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (LULU as at Jul 31, 2020):
Friday's trading range has been $6.60 (2.02%), that's below the last trading month's daily average range of $10.39. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for LULU.
After having been unable to move above 325.38 in the previous session, the share ran into sellers again around the same price level today, missing to move higher than 326.28. The last time this happened on Tuesday, LULU actually gained 0.96% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could accelerate should prices move above the close-by swing high at 333.88 where further buy stops might get activated. Selling could speed up should prices move below the nearby swing low at 316.99 where further sell stops might get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for lululemon athletica. Out of 758 times, LULU closed higher 51.85% 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 55.54% with an average market move of 1.05%.