Yesterday, we looked at a Daily Price Chart of Easterly Government Properties, Inc. and noted that the stock had been making a series of 52-week highs.
Today’s chart is for Lululemon Athletica Inc. (NYSE: LULU).
Lululemon Athletica Inc., together with its subsidiaries, designs, distributes, and retails athletic apparel and accessories for women, men, and female youth. The company offers pants, shorts, tops, and jackets for healthy lifestyle and athletic activities, such as yoga, running, and training.
The Daily Price Chart below shows that LULU has traded in a clear bullish pattern of higher highs and higher lows since January.
Track the Price Chart from lower left to the upper right…
This bullish trading pattern points to a further advance.
You see, typically stocks that make a series of two or more higher highs and higher lows reliably continue on in an upward trend.
But it’s important to note that strong stock rallies have pullbacks along the way — which for the savvy investor, present a buying opportunity.
Purchasing LULU after a 3 to 5% price pullback has provided a good entry point for the stock this year, and has produced a healthy return.
We’ll keep watching LULU as it tops its previous highs and waiting for price pullbacks.
Additionally, we’d like to talk about how a previous Chart of the Day stock has done…
On December 3rd, we highlighted SPDR S&P Semiconductor ETF (NYSE: XSD), noting that the 1-Month price was above the 10-Month SMA, signaling a PowerTrend ‘buy’ signal.
If you happened to have purchased XSD shares on that day, you’d already be up 3.95%.
But… if you had purchased the right option contract, you would be up 32.5% in just over a week’s time!
That’s what options can do for you as opposed to buying stocks.
Now, by this time, I’m sure you’ve heard about the PowerTrend Options service. Yesterday, we mentioned that we’d almost hit the maximum number of members for this year and had 100 spots open…
I don’t want you to miss out on the kind of gains our subscribers are seeing…
Like 106%… 101%… 67%… and more.
We’ve got even less spots open today (thank you to our new members!)
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Editor, Chart Of The Day