Cup and HandleTargets 1 for inverse H&S 395 408. Cup and handle targets are listed on chart.
ABC Bullish Targets 1 are 352 362 and have been met. Long term targets for ABC pattern, if momentum continues this far are 402.5 to 429
Long term high is 399.90.
This is trading in 3 patterns but no great horizontal trading zone to call a handle is evident as of yet. I drew a green lines where I see support.
LULU is volatile and can move quite a bit daily as a rule, both up and down so be patient on long entry if you like LULU. Maybe try not to chase it as sometimes it is hard to catch it. She runs both forward and backward at a fast pace. It is one that I keep but try not to stress over on bad days ); It has been a while since LULU had one of those painful pull backs. Ruh Row lol.
LULU is over the top Bollinger band set on a 80 moving average verses a 20 which shows extreme buying pressure and but has been riding it for several trading days. Bullish scenario but depends on your tolerance. Usually price returns to the interior of the bands.
Keeping an eye on overbought levels. RSI is on 80. When I first started trading, I got the terms overbought and oversold mixed up a lot. LOL. One day I decided to use the B in overbought to help me remember the B in "Bad" as to remember OverBought conditions can be a Bad time to buy for me as I am a swing trader and an investor, not a day trader. If you read my posts it is important to remember I do not look at securities like a day trader would. Some folks like to scalp stocks and do not mind overbought conditions. We are all different and sometimes you have to play it by ear.
Oversold is a good place to buy sometimes but in a bull market these levels can be hard to achieve for some securities. When a security remains oversold for extended periods, below 30 on RSI or whatever indicator you prefer for oversold conditions, it is possible there is a lot of supply at that level. In other words, lots of folks bought the security at the level that the oversold indicator gets stuck at. By the time it gets to oversold levels, the folks who bought at that level can be in a panic and selling due to fear it will go even lower. So they sell to break even, for a small gain, or for a loss. The longer the security stays oversold causes more and more panic. Folks lose patience and are like "will this dang stock ever move?" Patience can be a virtue as eventually the last group of sellers will sell. When the last seller sells, and there are not many sellers left, then you have buyers. But for me, it is just not optimal to have your money tied up in a long oversold ordeal because you can not use the cash to buy something that is moving.
Securities can remain oversold for a while just like they can remain overbought for extended periods of time. Some look to sell when overbought on daily, weekly and monthly indicator levels. Many prefer buying only when an indicator reaches a certain level..ie over 50 on RSI. I do not use a lot of indicators but I do like Bollinger bands and RSI set on 80 and 30 in a bull market. There are so many indicators, the Awesome Oscillator and Volume Weighted MACD are also indicators I like when unsure. I always look at negative volume and keep it in my volume window in TOS (Think or Swim). I look at short interest as well. As a rule, I do not like the clutter of a bunch of indicators though. We are all different.
Negative volume is high. Short interest is low.
Knowing what type of trader you are is important as you can develop your own edge in the market. I have realized over time that I am a pattern trader, obviously.
No recommendation. Risky I suppose, and since I teach yoga, so I am probably partial. Go with your gut (o:
