Lululemon Athletica (LULU) is dressed casual but the officers of the company will be serious when they report their latest earnings figures after the close of trading Tuesday. Let's check out the charts and indicators to see how they are positioned ahead of the news.
In the daily bar chart of LULU, below, I see a mixed picture. The shares have traded sideways in a choppy affair the past 12 months. Prices have crossed above and below the 50-day and the 200-day moving averages several times. The trading volume has increased since early September.
The On-Balance-Volume (OBV) line shows a rise from September and indicates or suggests that buyers of LULU are more aggressive than sellers. The Moving Average Convergence Divergence (MACD) oscillator is just below the zero line.
In the weekly Japanese candlestick chart of LULU, below, I see a mixed picture. The shares are trading around the 40-week moving average line and its slope is neutral.
The OBV line has shown weakness since November. The MACD oscillator is below the zero line but close to a cover shorts buy signal.
In this daily Point and Figure chart of LULU, below, I can see a potential downside price target in the $277 area.
In this weekly Point and Figure chart of LULU, below, I can see a downside price target in the $245 area.
Bottom-line strategy: I have no special knowledge of what LULU will report to shareholders Tuesday evening. I see rallies in some other apparel companies (like PVH (
PVH) and Ralph Lauren (
RL) ) and wonder out loud whether that can happen with LULU. Anything can happen.
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