Lululemon Athletica Inc - (LULU) - March 31, 2023 (Daily Stock Report)

by SIACharts.com

Athletic clothing producer and retailer Lululemon Athletica (LULU) has staged several significant swings between the red and green zones of the SIA NASDAQ 100 Index Report over the last year. This week, on the back of a positive earnings report, the shares have started another upswing, popping up out of the red zone into the Yellow Neutral Zone. The shares have climbed 15.8% in the last week, and the stock has moved up 52 positions in the last month to 40th place.

At key technical turning points for assets, we often see reversals of previous signals. In the current case of Lululemon Athletica (LULU) for example, this week’s upward gap on a volume spike, reverses a previous downward gap on volume, and signals the start of a new uptrend. Prior to this, a downtrend line, once broken, reversed and extended to become the falling support line that the shares recently launched up off of.

With the shares having regained $350.00 next potential upside resistance appears at previous highs near $386.00 and $410.00, along with the $400.00 round number. Initial support appears in the $325.00-$335.00 area.

Since a downtrend in Lululemon Athletica (LULU) shares bottomed out back in July, a new uptrend of higher lows and higher highs has emerged. The most recent downswing ended in a bear trap where the shares staged a triple bottom breakdown and snapped their uptrend line by one row, then sharply reversed back upward. Triple Top and Spread Double Top breakouts signaled that accumulation has resumed and the current high pole rally has carried the shares back up above their September high.

Upside resistance appears in the $393.40 to $409.30 range, a zone where previous highs, a horizontal count and the $400.00 round number cluster. Initial support appears near $329.20, where a 3-box reversal and a retest of recent breakout point converge.

With its bullish SMAX score increasing to 9, LULU is exhibiting strength against the asset classes.

Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.

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