Lululemon Technical Analysis (NASDAQ:LULU)
Technical analysis is based on the study of past price and volume movements of a security with the help of technical stock charts or trading charts. Just by looking at the Lululemon stock price one can't take a trading decision. A trader needs to find a chart pattern, which is a clear cut pattern formation on the LULU stock chart which creates a trading signal.
You can view Simple Moving Average - SMA 20 day, 50 day & 100 day, Exponential Moving Average - EMA 20 day, 50 day & 100 day charts, and Bollinger Bands for Lululemon. The technical analysis form of Lululemon stock analysis tries to understand the market by studying the stock market trend itself as opposed to other aspects like the company's fundamentals.
Lululemon Moving Average
Moving averages show the LULU stock price trend. The two most popular types of moving averages are the Simple Moving Average or SMA and the Exponential Moving Average or EMA. The 20 day moving average of $125.55 is below the last closing price of $130.19 and the 50 day moving average of $125.94 is below the last closing price of $130.19. The 10 and 20 day periods can predict short term moving average trends.
Lululemon Bollinger Bands
Bollinger bands consist of two price bands above and below a center line for any company stock like Lululemon. The tightening of bands is considered by most traders to be a precursor to sudden increase in volatility. Lululemon bollinger bands show that the stock price is $130.19, upper band is 132.6, lower band is 118.49, and the average is 125.55.
Lululemon Moving Average Convergence Divergence or MACD
The moving average convergence divergence or MACD is a technical indicator which helps assess the stock price trend. Traders usually wait for a confirmed crossover signal before entering into a trading position. Divergence implies that the current stock price trend could come to an end, when the stock price diverges from MACD. The Lululemon MACD indicator is below 0 indicating a bearish trend.
Lululemon Relative Strength Index
This technical indicator compares the relative strength or weakness of a stock. It measures the magnitude of rise or fall in stock price movements . If the RSI of LULU stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position.