Lululemon Athletica, Inc., together with its subsidiaries, designs,
manufactures, and distributes athletic apparel for women, men, and
female youth. The company's line of apparel and accessories include
fitness pants, shorts, tops, and jackets for healthy lifestyle
activities, such as yoga, running, and general fitness. Its
fitness-related accessories comprise bags, socks, underwear, yoga mats,
instructional yoga DVDs, and water bottles. The company sells its
products through a chain of corporate-owned and franchise stores; direct
to consumer through e-commerce; and a network of wholesale channel,
such as yoga studios, health clubs, and fitness centers. As of January
29, 2012, it had 47 stores in Canada, 108 stores in the United States,
18 stores in Australia, and 1 store in New Zealand under the lululemon
athletica and ivivva athletica brand names. lululemon athletica inc. was
founded in 1998 and is based in Vancouver, Canada.
To review Lululemon's stock, please take a look at the 1-year chart
of LULU (Lululemon Athletic, Inc.) below with my added notations:
Over the last (2) months LULU has been consolidating within a small,
rectangle pattern. Rectangle patterns form when a stock gets stuck
bouncing between a horizontal support and resistance. A minimum of (2)
successful tests of the support and (2) successful tests of the
resistance will give you the pattern. For LULU, the rectangle pattern
has formed a $70 resistance level (red), which was also a prior support,
and a $65 support level (navy) that has also previously been
resistance.
The Tale of the Tape: LULU has formed a rectangle
pattern. The possible long positions on LULU would be either on a
pullback to $65, or on a breakout above $70. The ideal short opportunity
would be on a break below $65 or at $70.
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