LULU has earnings coming up later this month. And we know the former momentum favorite has taken a backseat not only to current leaders like Google, but also to the broad market at-large with its disappointing underperformance. I had been looking for a reason to short the stock to little avail, as the key $65 level has held true as firm support, which you can see on the first chart below of the daily timeframe.
The second chart below is of the weekly timeframe, which shows a clear uptrend for several years now. While it is true the stock’s highs hit in the first quarter of 2012 have yet to be surpassed, the way in which the stock has consolidated since then on this timeframe should be noted. We now have price narrowing over the course of several quarters, building towards resolution. Indeed, I am now much more open to the stock regrouping and forming another leg higher in its bull run. Of course, the reaction to looming earnings may very well prove to be a game-changer.
But the numerous lululemon female (and some male) clientele have yet to throw in their yoga pants on this “fad.”
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tight bottoming formation
I expect the cock and balls formation to appear soon.
I look at the top photo & see somewhat of a ‘rising wedge’…