FUNDAMENTALLY: COMPELLING GROWTH AND EARNINGS PROFILE LULU is a specialized sportswear company with superior growth (revenue CAGR +24%) and profitability (ROE >20%). The stock was recently hammered on earnings which were in line, probably due to a rich valuation. This provides an entry opportunity into the stock.
TECHNICALLY: STILL SOLID AFTER THE DIP, AND OVERSOLD - Currently trading in the middle of the range ($65.98) of its long-term uptrend channel ($48 - $82). - Staged a powerful breakout in late March 2016. - Previous resistance (descending dotted line) has turned support. - Got hammered after flat earnings and esp. after hitting previous historical high. - Remains above main supports (see graph). - Currently looking oversold (RSI<30) and building a base above 200d MA. - Next levels to watch on the downside are $65.25 (200-MA) and $60.00 (breakout support).
TRADING CONCLUSION - Go long at the current price with upside targets at $71.50 and $82.00 and stop-loss at $60. - Compelling Reward/Risk ratio of 2.7/1. - Expect trade duration of 13 weeks, in line with recent up-channel duration.
Trade ativo
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MACD histogram has just turned positive - Another positive signal. Would like to see it still in positive territory at the close. Reiterate, with increased conviction, the strategy to go long at the current level. Target $82.00, stop-loss $60.00. Please note broker upgrade yesterday with target at 77/share.
Trade ativo
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Stock sliding down on below average volume. Currently still above the main support at 60.00. RSI around 20 looking very oversold, MACD positive. Continue to hold or buy here with a stop loss unchanged at 60.00.
Trade fechado: stop atingido
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Still very oversold but stop-loss reached: We traded and closed below 60 yesterday. Trade closed.