Did These Popular Brands Bottom?
I've never been one to call a bottom but I do like to look for signs that the worst is over or at least could be coming to an end.
Since no one ever knows for sure if a stock has bottomed it's best to use price as a guideline and tool for managing risk.
Lululemon's positive earnings report and price action last week got me looking at some other popular brands stock charts. Here's what I found.
All of the charts below share the following characteristics:
- Price is finding support/buyers at an area of prior resistance that has now become support
- On a longer time frame (weekly chart) price continues to make higher highs and higher lows = Uptrend
- Above average volume at or near the recent lows
- The horizontal support line offers a great place to manage risk if currently long or establishing a new position
Do you think these stocks have bottomed?
Let us know what you think.
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Nothing in this blog post should be considered investment advice and is provided for educational and entertainment purposes only. The commentary and information represent the opinion of the author and are not recommendations to buy or sell any security or investment product. The author may or may not hold positions in the securities and investments mentioned. Full disclaimer here.