Long Term Fibonacci and Bounce Planning for LuluLemon LULU
Thu, Jun 1, 4:11 PM ET, by Corey Rosenbloom
Lululemon (LULU) shares face a critical “make or break” support reversal test right now.
What’s the level – based on price and a Fibonacci Grid – and what’s the plan? Follow along:
We’ll start with the dominant Fibonacci Retracement grid from the 2014 low to the 2016 reversal peak at $80.
From there, we see the “Midpoint” at the $60.00 per share level and the 61.8% reference line at $54.00.
Right now, we’re focusing our attention on the “Final Fib” at 78.6% which is here at $46.28.
We’ll see shortly that the Daily Chart highlights a positive momentum divergence at this critical pivot.
Study these levels and use them as reference points to plan price movement “toward” and “away from” them.
Here’s the Daily Chart, complete with gaps in an ongoing downtrend:
Shares collapsed from the $80.00 per share high in mid-2016 to the current low under $50.00.
Once again, we’re seeing positive momentum divergences like we saw in late 2016 ahead of a gap-up bullish event.
Will something similar happen here?
For now, keep your focus on the $50.00 per share level, such that a bullish breakout here could signal a short-term bullish phase into the future.
If not, then use the Weekly Chart above to plan your bearish “downtrend continuation” outcome.
Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
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Corey's book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”
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