Buyback Bounce?
Round number theory continues to be and always will be a strategy of mine. One of the consumer best breed names below in LULU has undergone a quick shakeout, around the very round 300 and 400 figures. It is on a current 3 week losing streak, all of which were accompanied by larger than average WEEKLY volume, which has left the stock now in bear market mode down 22% from most recent all time highs. Interesting was that it fell 13% between 9/3-8, before the 7.4% haircut on 9/9 after earnings. Give it credit for rising 19 of 23 preceding weeks ending between 3/27-8/28, well more than doubling in the process. It is trying to mount a comeback this week thus far up more than 7%, after registering a bullish counterattack candle on Monday. The violent move lower losing more than 100 handles, as it dropped 9 of 11 sessions between 9/3-18 could have the stock washed out, and ready for a resumption of the uptrend. A buy near 305 seems like a good place to start.