LuluLemon LULU Squeezes its way Between the Daily EMAs
Mon, Aug 21, 3:51 PM ET, by Corey Rosenbloom
Shares of Lululemon (LULU) jumped today, but merely continued the “ping-pong” between the 20 and 50 day EMA price pivots.
It also held a key support level from our Fibonacci Grid. What’s going on? Let’s see it:
Shares plunged in 2017 from $70.00 beneath $50.00 but have since recovered.
Strangely enough, shares sit right at the 50% retracement (recovery) of the 2017 decline.
It’s a key level that we’ll use for our future swing/short-term trading.
Simply stated, price is playing bouncy-bounce (ping-pong) between the falling 20 and rising 50 day Exponential Moving Averages (EMAs).
We won’t take a trade until price BREAKS OUT of this yellow zone between the EMAs.
When it does, use it as your trigger to trade the “Departure” from this squeezed level.
A breakout beyond $60.00 then $62.00 suggest a recapturing of the bull market in motion.
Otherwise, a firm breakdown beneath $58.00 suggests we just saw a Dead Cat Bounce and may easily see shares tumble lower toward $52.00 or even lower than that.
Plan and trade accordingly.
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
Follow Corey on Twitter: http://twitter.com/afraidtotrade
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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