A new Trend channel for LuLu?When creating a trading channel for all of 2019, LULU showed consistent growth and created this neat and reliable trading pattern. Enter the Ides of March. The raucous movements of all stocks disrupt this pretty uptrend. LULU fell much further than it should and then, subsequently, rallied higher than it should (if it was to stay within the previous trading channel of 2019). IF we assume that this trading channel is Where LuLu should be, then as of 9/12/2020 the stock is still Overbought. However, to delve into a possible change in the trading channel position (a pandemic can stifle or accelerate a company's growth), the Month of June created a pullback from the rally upwards where the width of the pullback matches the width of the 2019 trading channel's extents almost perfectly. Should we move the trading channel up to incorporate these two points as the beginning of a new channel, then a Bullish sentiment should be taken for LuLu as it is approaching the base of this possible new trading channel.
This idea will likely be debunked in the next week if LuLu falls bellow $300 for an entire day.
