LULU trade ideas
Double bottom on LULULULU has been showing the bullish support I've been waiting for for over a month. We double bottomed and are breaking the neckline now.
To buy now or to wait for it to drop to around $51-52?Very strong trendline..I am going to keep watching $LULU
LULU holding pivot at 55, but for how long?Technically Speaking
LULU is holding the pivot area of 55ish, so far, the week is not out yet.
A pretty clear range looks to be forming b/w 55-80 level, assuming the 55 level holds.
Fundamentals
Here is a summary of the company.
What to do?
Bit of a tough one for me. The R/R seems to favor the long side, but I think the bigger level and tougher one to break will be the 36-40 area. Depending on your time frame and style you could scale in and stop out completely under 30-35.
$LULU Could catch more UpsideLULU has been grinding up intra day then breaking out, this is the third consolidation so i'm looking for a third run here. If not, then my risk is set under the cosoldidations. I'm holding this one a little longer
LULU down towards strong support. Looking for a BUY.Near strong support.
Waiting for bullish candle and a retest with great volume to buy.
LULUNot sure which way this is GOING to go, but I think it COULD potentially go either way. Been in a pretty well defined channel for some time now. I think when we break the channel, volume will come in and we will trend in a direction.
Earnings dip provides long opportunity. Reward/Risk ratio = 2.7xFUNDAMENTALLY: COMPELLING GROWTH AND EARNINGS PROFILE
LULU is a specialized sportswear company with superior growth (revenue CAGR +24%) and profitability (ROE >20%). The stock was recently hammered on earnings which were in line, probably due to a rich valuation. This provides an entry opportunity into the stock.
TECHNICALLY: STILL SOLID AFTER THE DIP, AND OVERSOLD
- Currently trading in the middle of the range ($65.98) of its long-term uptrend channel ($48 - $82).
- Staged a powerful breakout in late March 2016.
- Previous resistance (descending dotted line) has turned support.
- Got hammered after flat earnings and esp. after hitting previous historical high.
- Remains above main supports (see graph).
- Currently looking oversold (RSI<30) and building a base above 200d MA.
- Next levels to watch on the downside are $65.25 (200-MA) and $60.00 (breakout support).
TRADING CONCLUSION
- Go long at the current price with upside targets at $71.50 and $82.00 and stop-loss at $60.
- Compelling Reward/Risk ratio of 2.7/1.
- Expect trade duration of 13 weeks, in line with recent up-channel duration.
$LULU Falling$LULU has been one of the hottest stocks this year....until today. Their mixed guidance for next year is nothing to worry about. If you don't live in a cave you know every girl either wants or wears lulu. I know there are cheaper options, but lets be honest...they are a status symbol. As long as the stock holds $67, i think you pick some up.
www.trendyprofits.com
LULU- taking Put option on earningLULU seems scooping after a huge run & also breaking down from a rising wedge. Money-flow is strongly down in the neg-side. We think its run is over, and it will fall from here with the earning report.
On the trading side we like to take option on earnings here, we are looking for SepW1 75 put $2.07, and Oct 75 put for $3.46
You can check our updated analysis on GALE in the trading room/ Executive summery link here-
www.screencast.com
Time Span: 22:50"
Trade Status: Pending
2 H&S in a rowThere is a new H&S confirmed by a backtest in the daily and an older H&S not yet fulfilled which has been building since end of past year. Both of tem indicate higher proces. And so does the new high afer a double top.
Lululemon Athletica (LULU). Could Halve Its Value.Flat correction. Target for C is at the trough of the wave A = 36.26. Way to go!
LULU SCALING UP Possible 123 pattern. Earning announcement in Sep 8th. If your looking for a quick trade best to wait for 4th pattern to develop as an entry point to go long. 2nd options is aggressive and its shorting at the resistances level 3rd pattern, then exiting near (or reaching near) 4th pattern. Anomaly movement is no rally to the 5th pattern point, consolidation (horizontal pattern), or decline. However caution on false break tho, because the trend is your friend. RSI is oversold so possible pop to the 3rd pattern could develop from now (Aug) to Sep. If stock is up nearing earnings release then I expect 4 scenarios. For instance a positive announcement I expect a gap up and maybe an overreaching of pattern 3, followed by a declining developing a 4 pattern. In contrast, if the announcement is bad and LULU is around the price level of patter 3 of the channel I expect a gap down to the forth pattern in the channel. 3rd is if earnings announcement is mixed, which most likely still precluded to be negative either way then expect a decline. lastly, nothing will happen and the only movement is intraday noise - hence the fluctuation between patterns 1 & 2. Longterm trend may remain the same.
H&S Chance: Good for 25%?There is a wonderful bullish H&S! Treading above the neckline generates a longsignal with TPs: 82$/88$/97$
In my Chart i nhave illustrated the possible Breakout-Longposition. Where you place your sl, depends on the timeframe you are trading.
Good luck!
BBBBUY!After Reading last week research note in barron’s. I have to disagree with the analyst firm. On the other hand Under Armor $UA And Nike $NKE is under price. Lululemon Athletica $LULU within 11 days the stock has been up 19.25%. I think They forgive Lululemon for the see through pants, I like Nike more because they pay dividends but, Nike was someone. Buy Lululemon Athletica $LULU now
Expanded Flat ScenarioThe "X" wave may have ended at Primary Wave "C" (far left of chart)... or perhaps we're still in it. I'd say LULU may be completing a "Y" wave in a combination bringing us to Supercycle (IV).
Pennant consolidation pattern developsSee notes on chart. Price/volume action confirms the current pattern analysis. We had a massive volume spike to the upside in the flagpole validating the start of the pattern and when the pennant breaks to the upside on heavy volume, the trade can be made to the upside target noted. Which is about a 10% move. As always wait for the confirmation signal. Using Williams %R(9) should allow us to determine some form of overbought/oversold relationship during the consolidation. A higher risk entry could be at an oversold reading and a lower pennant boundary touch on very low volume, as it might suggest the sellers are gone, but the lower risk entry is a continuation of the prior trend. Look for volume on up days toward the end of the pattern to be higher than on down days as this could give clues to the sentiment. As always trade responsibly and this doesn't constitute advice, just my opinion.
Good trading,
