LULU SCALING UP
Possible 123 pattern. Earning announcement in Sep 8th. If your looking for a quick trade best to wait for 4th pattern to develop as an entry point to go long. 2nd options is aggressive and its shorting at the resistances level 3rd pattern, then exiting near (or reaching near) 4th pattern. Anomaly movement is no rally to the 5th pattern point, consolidation (horizontal pattern), or decline. However caution on false break tho, because the trend is your friend. RSI is oversold so possible pop to the 3rd pattern could develop from now (Aug) to Sep. If stock is up nearing earnings release then I expect 4 scenarios. For instance a positive announcement I expect a gap up and maybe an overreaching of pattern 3, followed by a declining developing a 4 pattern. In contrast, if the announcement is bad and LULU is around the price level of patter 3 of the channel I expect a gap down to the forth pattern in the channel. 3rd is if earnings announcement is mixed, which most likely still precluded to be negative either way then expect a decline. lastly, nothing will happen and the only movement is intraday noise - hence the fluctuation between patterns 1 & 2. Longterm trend may remain the same.
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