Fit-Looking Lululemon Is Likely to Stretch Even Higher

The stock has been in a strong uptrend since late December of last year.

During the Lightning Round segment of Mad Money Thursday night one caller asked Jim Cramer about Lululemon Athletica inc. (LULU) . Cramer replied: "I like Lululemon. They're one of the retail survivors as well a lifestyle cult that people love."

Let's check and see if the charts of LULU are still in shape for further gains.

In the daily bar chart of LULU, below, we can see that prices have been in a strong uptrend from late December. Prices are above the rising 50-day moving average line and the bullish/rising 200-day moving average line.

The volume histogram shows a number of volume spikes or surges when LULU has gapped higher. The On-Balance-Volume (OBV) line shows a bullish stair-step rise the past 12 months as buyers of LULU have remained more aggressive the past year.

The trend-following Moving Average Convergence Divergence (MACD) oscillator is bullish and has been above the zero line for nearly the entire past year.  

 

In the weekly bar chart of LULU, below, we can see an impressive rally over the past few years. Prices are firmly above but not extended above the rising 40-week moving average line.

 

The weekly OBV line has been bullish for nearly all of the past three years. The MACD oscillator is turning up for a fresh outright go long signal. 

 

 

In this Point and Figure chart of LULU, below, we can see a potential upside price target of $251. 

 

Bottom-line strategy: LULU might dip a little in the short-run but prices should maintain their uptrend with the $250 area as the next price target. Maintain longs.

 

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