Candlesticks - Is Lululemon Trade Over?
By TradersHuddle Staff, January 17
Shares of lululemon athletica (NASDAQ: LULU) ended the trading session lower by $1.28 or -2.07% from its previous close despite Jefferies bumping its target price on the stock to $65 from $54. lululemon's price action formed what is considered to be a bearish engulfing candlestick chart pattern.
Lululemon's current stock range is defined by calculated support defined at $46.51 and by the resistance level at $62.25, which should be used by traders planning their moves.
Traders wanting to establish a position in lululemon or traders that are already holding the stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current price action. The Bearish engulfing pattern is a leading warning sign for a trend reversal to occur.
Lululemon Athletica Inc. (NASDAQ: LULU) designs and retails athletic clothing. The Company produces fitness pants, shorts, tops and jackets for yoga, dance, running, and general fitness.
The bearish engulfing pattern is a leading indicator that provides an alert to traders that the current trend is about to reverse.
