Shares of Lululemon Athletica inc. (LULU) were downgraded by Citi today as the global bank cut its rating to "Neutral" from "Buy," citing valuation, after the big rally in the stock this year.
Let's check out the charts of this seller of everything from athletic wear to hair accessories, bags, yoga mats and water bottles. If you have a brand, flaunt it.
In the daily bar chart of LULU, below, we can see that the shares rallied from their V-bottom in March and have nearly tripled in only five months. LULU is still above the rising 50-day moving average line but we could see this shorter moving average being tested in the days ahead.
The On-Balance-Volume (OBV) line shows a firm rise from March and only some slight weakness in recent days. This does not suggest significant liquidation.
The Moving Average Convergence Divergence (MACD) oscillator is crossing to the downside at a lower high than June. This is a bearish divergence with the indicator weaker than the price action.