• 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
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

Lululemon Reaches a Key Price Target: What Should Investors Do Now?

LULU is trading around above $200 after blowout earnings.
By BRUCE KAMICH
Sep 06, 2019 | 09:48 AM EDT
Stocks quotes in this article: LULU

Lululemon Athletica Inc. (LULU)  released their latest quarterly results Thursday night. Earnings in the fiscal second quarter were $0.96 cents a share, up from $0.71 a year earlier and ahead of analysts' forecasts of $0.89. Revenue rose 22% from a year earlier to $883.4 million and beat estimates of $846 million. Same-store sales in the quarter jumped 15%, beating estimates of 12.2%.

LULU is trading around $200 Friday morning. When we looked at the charts of LULU the other day the Point and Figure chart suggested weakness. We wrote that, "Traders and recent longs might want to consider lightening long positions as a correction to the $150 area could unfold in the weeks ahead." Another reminder that no investment methodology is perfect.
 
Let's check out the charts again this morning.
 
In the daily bar chart of LULU, below, we can imagine that prices are trading at a new high and well above the rising 50-day moving average line as well as the slower-to-react 200-day line. The sideways or neutral On-Balance-Volume (OBV) line, which we saw the other day, could break out to a new high Friday if volume is heavy enough.

The Moving Average Convergence Divergence (MACD) oscillator, which was below the zero line the other day, may cross above it Friday.

In the weekly bar chart of LULU, below, we can see some improvement with Thursday's rally. Prices are still above the rising 40-week moving average line but the weekly OBV line has notched a new high.

The MACD oscillator narrowed toward a possible or eventual bullish crossover.

In this Point and Figure chart of LULU, below, we have the benefit of Thursday's rally and new upside price target of $201 -- about where prices are trading this morning.


Bottom-line strategy: With LULU trading near its Point and Figure target early Friday I see no reason to make a recommendation other than if you happen to be long you may consider booking some profits.

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 | Stocks | Technical Analysis | Apparel | Retail | Stock of the Day

More from Stocks

There Are Interesting Things Happening Beneath the Surface of This Market

James "Rev Shark" DePorre
Aug 8, 2022 4:32 PM EDT

Look for more positioning on Tuesday ahead of two important economic reports.

Can Rhythm Pharmaceuticals Keep Up This Tempo?

Bruce Kamich
Aug 8, 2022 3:01 PM EDT

The stock has surged amid an analyst upgrade.

What AIG's Charts Say About the Stock Ahead of Earnings

Bruce Kamich
Aug 8, 2022 2:03 PM EDT

The stock just tested the underside of the declining 50-day moving average.

Solar Firm Sunrun Continues to Run on the Upside

Bruce Kamich
Aug 8, 2022 1:24 PM EDT

Here's what the longer-term picture looks like.

Weariness Sets in During This Bear Market Phase

Bob Lang
Aug 8, 2022 1:00 PM EDT

Sentiment is starting to turn bullish, but painted with a skeptical eye as the wall of worry is up 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

  • 09:24 AM EDT PETER TCHIR

    Jobs Report Reaction: Incredibly Strong, But Questions to Ask

    An incredibly strong July jobs report. Not only d...
  • 08:54 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The Secret to Dealing With FOMO
  • 03:51 PM EDT REAL MONEY

    AMD Second-Quarter Earnings Live Blog

    Real Money's Eric Jhonsa covers 's second-quarte...
  • 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