Categories
Consumer Goods

Lululemon Athletica Inc ($LULU) : Hitting kumo resistance

LULU has gapped down has gapped down back in June 6 from $70 to $65 range.

It has since went lower and hit support at around $54 before rebounding.

There is a pretty good setup now.

With LULU trading at around $64.35, it is hitting the resistance from the gap down as well as the kumo on the Ichimoku chart.

Categories
Consumer Goods

$LULU . Once a darling.

$LULU was once a darling for the IBD.

It rides on a good wave, targeting the well-heeled and the growing yoga sports culture a couple of years back.

As a retailer, LULU’s growing income hinges on its ability to increase its store first across the nation, second the region and third internationally.

It was the International market that I have been waiting. Most companies expands real quick in the North America easily as they enjoy similarities.

However, the challenge will set in as they try to embrace International business in Europe, Middle East and Asia. All of a sudden, they find themselves lacking the strengths to expand. Or the markets outside of their core region does not embrace their products as easily.

In my opinion, LULU is in such a situation. Its growth will be slowing soon. Margins will soon be eroded. And it will heads towards the $20+.

At this moment, LULU is trading below the kumo since the breakdown of the market a month back. As it rallies back together with the general market, I see opportunities for shorts.