Bearish DailyPlay for Wednesday Oct 26th, 2016 – lululemon (LULU)
The bearish DailyPlay we chose for Wednesday Oct 26th is lululemon (LULU). LULU is part of the Consumer Discretionary Sector (XLY). Over the last month, XLY has experienced a 0.55% move higher and it’s 1m and 6m trend turned bearish yesterday and recently broke bounced lower off its $80 resistance level.
lululemon’s 1m and 6m trends turned bearish on 9/2 and recently broke below its $60 support level on high volume. With a technical score of 1 (out of 10), LULU looks positioned to continue this strong bearish trend lower.
As a stop loss, if LULU was to trade above $60 for multiple days, this would invalidate our analysis and suggest getting out of the trade.