• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

Lululemon Still Trades Higher Amid New Price Target and Risk Levels to Watch

Lululemon might suffer a short-term shake-out or dip but the overall technical picture suggests we could see higher prices in the weeks and months ahead.
By BRUCE KAMICH
Aug 27, 2018 | 12:37 PM EDT
Stocks quotes in this article: LULU

lululemon athletica Inc. (LULU) was last reviewed at the end of March where I wrote "Many times before an upside breakout occurs from an earnings "surprise" you can find some positive clues. Looking at LULU today I have not found a pattern of accumulation. While surprises do happen on Wall Street, I am not that confident to follow the strength this morning on LULU. I could be missing a rally to $100 but I would probably have to risk to $77 and that does not give me an attractive risk/reward ratio." As things turned out LULU gapped to the upside and rallied to $100 and then another $40 after that - I missed the boat and a big payday for readers. Let's look at the charts again this morning and see if I can get it right this time.

In this updated daily bar chart of LULU, below, we can see a bullish alignment of our favorite technical indicators. Prices are in a uptrend with LULU above the rising 50-day moving average line and the bullish 200-day line. The daily On-Balance-Volume (OBV) line has been steady for the past three months and is very close to making a high for the move up. A new high for the OBV line would confirm the price strength and tell us that buyers of LULU are behaving more aggressively with heavier volume being transacted on days when LULU has closed higher on the day. The daily Moving Average Convergence Divergence (MACD) oscillator turned up in early August to a fresh outright go long signal.

In this updated weekly bar chart of LULU, we can see a bullish picture. Prices are in an uptrend and above the rising 40-week moving average line. The weekly OBV line has been in an uptrend since May 2017 and tells us that buyers have been strong accumulators of shares for several months. The two moving averages that make up the weekly MACD oscillator have been on top of each other but now look to be turning upwards to a fresh buy signal.

In this Point and Figure chart of LULU, below, we can see LULU in an uptrend with a possible price target of $158.70. A new high trade at $140.77 will be positive and a decline to $133.94 will be slightly bearish.

Bottom line strategy: LULU might suffer a short-term shake-out or dip but the overall technical picture suggests we could see higher prices in the weeks and months ahead. The $160 area is our upside price target and longs should risk below $125 for traders and below $119 for investors.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Investing

More from Investing

Don't Shout 'V' for Victory, Yet

James "Rev Shark" DePorre
Jun 27, 2022 4:22 PM EDT

Even after last week's move higher and Monday's narrow range of movement, we can say it's going to be difficult to produce a 'V'-shaped setup like we had at the pandemic low in 2020.

Let's See If Vertex Pharmaceuticals Can Push Higher on the Charts

Bruce Kamich
Jun 27, 2022 3:03 PM EDT

Here's what traders should do.

LyondellBasell Could Hold Temporarily Before Renewed Declines

Bruce Kamich
Jun 27, 2022 2:22 PM EDT

Let's take a look.

Kass: Why Markets Could Make a Yankees-Like Comeback

Doug Kass
Jun 27, 2022 2:00 PM EDT

I remain uncharacteristically bullish. Here's why.

Here's How to Treat Bristol-Myers Squibb's Charts

Bruce Kamich
Jun 27, 2022 1:10 PM EDT

BMY is breaking out to a new high.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 12:04 AM EDT PAUL PRICE

    Two Good Signs -- Especially for Small-Cap Investors

  • 12:10 AM EDT PAUL PRICE

    More Insider Buying in American Woodmark (AMWD)

    American Woodmark , which I've discussed here fr...
  • 08:55 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The 10 personality traits of successful traders an...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login