Lululemon Athletica inc. (NASDAQ: LULU)

lululemon athletica inc., together with its subsidiaries, designs, manufactures, and distributes athletic apparel and accessories for women, men, and female youth. It operates in three segments: Corporate-Owned Stores, Direct To Consumer, and Other. The company’s line of apparel 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, and water bottles. The company sells its products through a chain of corporate-owned and operated retail stores; direct to consumer through e-commerce Websites; and a network of wholesale channel, such as premium yoga studios, health clubs, and fitness centers.
Take a look at the 2-year chart of Lululemon (Nasdaq: LULU) below with my added notations:

A rounding bottom is a reversal pattern that is as simple as it sounds: After an extended sell-off, a stock ‘rolls upward’ from the left to right thus forming a potential bottom that, once formed, looks somewhat like a broad ‘U’.
LULU appears to have formed a rounding bottom price pattern (blue) from April until last week. As with any price pattern, a confirmation of the pattern is needed. LULU would confirm its pattern by breaking the $55 resistance (red) that has been created by the rounding bottom pattern.

The Tale of the Tape: LULU seems to have formed a rounding bottom. A long trade could be made on a break above $55 with a stop loss set below that level.
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