A Bearish Sign Appears On Lululemon Athletica's Chart

If history is any guide, there may be trouble ahead for shares of Lululemon Athletica LULU. A so-called "death cross" has formed on its chart and, not surprisingly, this could be bearish for the stock.

What To Know: Many traders use moving average crossover systems to make their decisions.

When a shorter-term average price crosses above a longer-term average price, it could mean the stock is trending higher. If the short-term average price crosses below the long-term average price, it means the trend is lower.

Why It's Important: The 50-day and the 200-day simple moving averages are commonly used.

The death cross occurs when the 50-day moves below the 200-day. This could mean the long-term trend is changing.

That just happened with Lululemon Athletica, which is trading around $291.00 at publication time.

Remember: Seasoned investors don't blindly trade Death Crosses.

Instead, they use it as a signal to start looking for short positions based on other factors, like price levels and company fundamentals & events.

For seasoned investors, this is just a sign that it might be time to start considering possible short positions.

With that in mind, take a look at Lululemon Athletica's past and upcoming earnings expectations:

Quarter Q3 2022 Q2 2022 Q1 2022 Q4 2021
EPS Estimate 1.96 1.86 1.43 3.28
EPS Actual 2 2.20 1.48 3.37
Revenue Estimate 1.81B 1.77B 1.53B 2.13B
Revenue Actual 1.86B 1.87B 1.61B 2.13B

Also consider this overview of Lululemon Athletica analyst ratings:

Do you use the Death Cross signal in your trading or investing? Share this article with a friend if you found it helpful!

This article was generated by Benzinga's automated content engine and reviewed by an editor.

Posted In: MarketsMoversTrading IdeasBZI-CROSS
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