lululemon athletica inc. is a technical athletic apparel, footwear, and accessories company. Co. organizes its operations into four regional markets: the Americas, China Mainland, Asia Pacific (APAC), and Europe and the Middle East (EMEA). It conducts its business through a number of different channels in each market, including Co.-operated stores, e-commerce, temporary locations, wholesale, outlets, a re-commerce program, and license and supply arrangements. Co. offers a comprehensive line of technical athletic apparel, footwear, and accessories marketed under the lululemon brand.
When researching a stock like lululemon athletica inc, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from LULU Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for LULU stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the LULU 200 day moving average ("LULU 200 DMA"), while one of the most popular "shorter look-backs" is the LULU 50 day moving average ("LULU 50 DMA"). A chart showing both of these popular moving averages is shown on this page for lululemon athletica inc. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the LULU 200 DMA and the LULU 50 DMA, we get a moving average convergence divergence indicator ("LULU MACD"). The LULU MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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Video: Technical Analysis