• 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 Athletica Looks Likely to Stretch Downward

The charts -- and Jim Cramer -- agree on LULU, so approach with some ... flexibility.
By BRUCE KAMICH
Feb 25, 2021 | 11:44 AM EST
Stocks quotes in this article: LULU

During the "Lightning Round" segment of "Mad Money" on Wednesday a caller asked host Jim Cramer about Lululemon Athletica (LULU) .

"I think it's done going down. People say it's over but that's when I want to buy," responded Cramer. 

Let's check out the charts again. We l ooked at LULU on Dec. 16 and wrote that, "Currently it looks like LULU may trade sideways a bit longer, but with the major trend being up. I would look for an upside breakout in the months ahead." Have the charts weakened or strengthened?  
 
In this updated daily bar chart of LULU, below, we can see that prices have declined from the middle of December and are trading below the declining 50-day moving average line and below the still rising 200-day moving average line. The On-Balance-Volume (OBV) line has weakened from the time of our last review in December and this tells us that sellers of LULU have been more aggressive. The Moving Average Convergence Divergence (MACD) oscillator fell below the zero-line in January for an outright-sell signal. 
 
 
In this weekly bar chart of LULU, below, we can see that some bearish clues have surfaced. Prices are trading below the rising 40-week moving average line. Trading volume has diminished since August while the OBV line has been stalled/flat. The MACD oscillator has been weak since early September when it crossed to the downside.  
 
 
In this Point and Figure chart of LULU, below, we used daily price data. A downside price target is right at hand. 
 
 
In this second Point and Figure chart of LULU, below, we used weekly close only price data with a traditional even dollar scaling. Here the chart suggests a downside price target in the $281 area. 
 
 
 
 
Bottom line strategy: Sometimes charts can turn on a dime, so to speak, but more often trends in force then to remain in force. For now, the charts of LULU are pointed lower. The September lows will be key.
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 prohibited from trading individual securities.

TAGS: Investing | Technical Analysis | Apparel | Retail | Mad Money

More from Investing

I'm Warming Up to Carnival, but Not Ready to Climb Aboard Yet

Jonathan Heller
Jun 27, 2022 10:00 AM EDT

The stock price of a cruise line operator is becoming more reasonable, but its heavy debt load remains a huge concern.

AbbVie Rallies After Its Test of the Rising 200-Day Moving Average Line

Bruce Kamich
Jun 27, 2022 9:55 AM EDT

Let's review the charts and indicators.

The Fed Blinked and So Did We

Peter Tchir
Jun 27, 2022 9:30 AM EDT

Here's what we need to get a bigger rally.

A Hawkish Fed Will Make a V-Shaped Bounce Difficult to Sustain

James "Rev Shark" DePorre
Jun 27, 2022 8:15 AM EDT

Such bounces seemingly have been the norm for a while, but circumstances this time are quite different than any time since 2008-2009.

Let's Check Nike's Charts Ahead of Monday's Earnings

Bruce Kamich
Jun 27, 2022 8:12 AM EDT

Here's what traders who are still long NKE could continue to do.

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