Shares of Lululemon Athletica Inc. (LULU) have seen the highs and the lows in just the past few months. LULU sold off steeply from the middle of February to the middle of March. The move was swift and deep.
Te stock has nearly regained all of its lost ground but some subtle clues are telling us to become more cautious. Let's check out the latest charts and indicators of this athletic apparel company.
In the daily bar chart of LULU, below, we can see a picture that could spawn a reversal or a correction. Prices look like they have encountered some selling resistance above $240. LULU is still above the rising 50-day moving average line and the rising 200-day moving average line.
The On-Balance-Volume (OBV) line is pointed up but it is not as strong as the price movement. The Moving Average Convergence Divergence (MACD) oscillator is above the zero line but struggling not to cross to a take profits mode.