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Lululemon: A Hot Stock in Yoga Pants

Lululemon Athletica Inc. (LULU) makes and retails athletic gear and accessories, including the forever popular yoga pants that scads women love to wear both at the gym and on casual outings.

The stock fusty Tuesday at $66.36, up 2.1% year to date and solidly in bull sell territory at 39.3% above its post-election low of $47.64 set on May 30. The stock set its post-election excited of $72.70 on Dec. 8, 2016, and is 8.7% below this level. Lululemon dispensations have had a volatile ride since trading as high as $81.81 on Aug. 25, 2016, then line of work as low as $47.26 on May 31, 2017. This price movement can be evaluated using Fibonacci retracements of the dwindle from this high to this low.

Analysts expect Lululemon to column earnings per share between 52 cents and 55 cents when it reports outcomes after the closing bell on Dec. 6. Wall Street looks for yield growth to continue as margins improve on new designs to make you look peerless while you sweat at the gym. (See also: Lululemon Stock Could Head Into Long-Term Breakout.)

The habitually chart for Lululemon

Daily technical chart showing the performance of Lululemon Athletica Inc. (LULU) stockCourtesy of MetaStock Xenith

The daily chart for Lululemon productions horizontal lines that represent the Fibonacci retracement levels of the 42% degenerate from the August 2016 high to the low seen on May 31, 2017. The five expenditure gaps lower or higher were in reaction to the past five earnings documents, so traders and investors should beware of the risk/reward this afternoon. The blueprint clearly shows a neutral zone between the 50% retracement of $64.55 and the 61.8% retracement of $68.61.

The weekly tabulation for Lululemon

Weekly technical chart showing the performance of Lululemon Athletica Inc. (LULU) stockCourtesy of MetaStock Xenith

The weekly chart for Lululemon is forceful but overbought, with the stock above its five-week modified moving unexceptional of $64.72, and Lululemon has been above its 200-week simple unfixed average, or “reversion to the mean,” which is currently at $57.86, since the week of June 30. The 12 x 3 x 3 weekly stolid stochastic reading is projected to end this week at 84.90, solidly insusceptible to the overbought threshold of 80.00.

Given these charts and analysis, my trading design is to buy weakness to my semiannual value level of $41.17 and to reduce holdings on stoutness to my quarterly risky level of $72.92. My monthly pivot (or magnet) is $67.42. (For diverse, see: Top 4 Consumer Cyclical Stocks for 2017.)

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