During Wednesday night's Mad Money program on CNBC, Cramer looked at some retailers. He first looked at lululemon athletica (LULU) . LULU declined in the fourth quarter. He said that when the macro economic worries vaporized after the holidays, LULU was among the first to rebound, a move that was only amplified on Monday when the company forecast same-store sales growth in the mid-teens. LULU remains a growth story, Cramer added, and should be bought. Let's take a minute to check the charts and indicators.
In this daily bar chart of LULU, below, we can see that prices traded below the rising 200-day moving average line for much of December but are now back above this long-term indicator. The slope of the 50-day moving average line is now flat after declining and LULU is above this line too. The daily On-Balance-Volume (OBV) line has been strong the past three weeks and is close to making a new high. If the OBV line makes a new high soon it will lead the price series - this is not unusual for this indicator. The Moving Average Convergence Divergence (MACD) oscillator recently crossed back above the zero line for an outright go long signal.
In this weekly bar chart of LULU, below, we can see a bullish alignment of the indicators. Prices are above the rising 40-week moving average line. The weekly OBV line is turning up and the MACD oscillator is close to a crossover above the zero line for an outright go long signal.
In this Point and Figure chart of LULU, below, we can see an upside price target of $153.16 being indicated. This is not a big bullish target but if reached it puts LULU close to making new highs with little overhead resistance on the chart.
Bottom line strategy: risking below $130 for now, approach LULU from the long side on any shallow dip. Look for a rally to the $153-$160 area and potentially to new highs.