📉TechnicalAnalysis: LULU – 15-Min Chart (Short Bias)
On the 15-minute timeframe, LULU is currently forming a series of lower highs and lower lows, confirming a short-term bearish market structure. Price recently broke below a key intraday support zone near $243, which had previously held as a short-term demand area. This breakdown was followed by a weak bullish retracement, suggesting supply is in control.
The retracement failed to reclaim the previous structural break, forming what looks like a bearish continuation flag or supply retest, providing an ideal short entry opportunity.
Price is currently trading below the 50-period EMA, and momentum indicators are showing bearish divergence, with price attempting minor higher wicks while momentum (measured via RSI or MACD) continues to trend downward.
From a Smart Money Concepts (SMC) perspective, the internal structure shifted bearishly after a clear break of structure (BOS). Price is reacting to a prior liquidity sweep above $248 before dropping, showing signs of institutional distribution. That high can now be considered a short-term supply origin, and price continues to respect that imbalance.
đź”» Price Target: $225
The next key HTF (higher-timeframe) inefficiency zone lies near $225, aligning with:
Daily bullish OB that hasn’t been mitigated
Previous strong bounce zone
A potential magnet for resting liquidity
đź“Š Fundamentals Supporting the Bearish Move
Earnings Outlook & Valuation Concerns: LULU's most recent earnings beat expectations, but guidance was tepid, and margin compression was noted, especially on international expansion and inventory buildup.
Consumer Sentiment Shift: Discretionary spending has weakened post-COVID boom in premium apparel; market is rotating into staples and discount retail.
Technical Selloff in Growth Sector: Broader weakness in growth stocks and high-beta names following hawkish Fed commentary reinforces LULU’s downside risk.
On the 15-minute timeframe, LULU is currently forming a series of lower highs and lower lows, confirming a short-term bearish market structure. Price recently broke below a key intraday support zone near $243, which had previously held as a short-term demand area. This breakdown was followed by a weak bullish retracement, suggesting supply is in control.
The retracement failed to reclaim the previous structural break, forming what looks like a bearish continuation flag or supply retest, providing an ideal short entry opportunity.
Price is currently trading below the 50-period EMA, and momentum indicators are showing bearish divergence, with price attempting minor higher wicks while momentum (measured via RSI or MACD) continues to trend downward.
From a Smart Money Concepts (SMC) perspective, the internal structure shifted bearishly after a clear break of structure (BOS). Price is reacting to a prior liquidity sweep above $248 before dropping, showing signs of institutional distribution. That high can now be considered a short-term supply origin, and price continues to respect that imbalance.
đź”» Price Target: $225
The next key HTF (higher-timeframe) inefficiency zone lies near $225, aligning with:
Daily bullish OB that hasn’t been mitigated
Previous strong bounce zone
A potential magnet for resting liquidity
đź“Š Fundamentals Supporting the Bearish Move
Earnings Outlook & Valuation Concerns: LULU's most recent earnings beat expectations, but guidance was tepid, and margin compression was noted, especially on international expansion and inventory buildup.
Consumer Sentiment Shift: Discretionary spending has weakened post-COVID boom in premium apparel; market is rotating into staples and discount retail.
Technical Selloff in Growth Sector: Broader weakness in growth stocks and high-beta names following hawkish Fed commentary reinforces LULU’s downside risk.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Looking for powerful AI trading signals? Visit ProSignal.ai and take your trading to the next level! or join our telegram channel at t.me/prosignalai
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.