Is Lululemon Athletica (LULU) Setting Up for a Cup & Handle Breakout?

The trade -->  Buy  77.5 DEC calls if stock breaks above $78.96 on heavier volume

A cup & handle pattern is forming on the daily chart below with the breakout high @ $78.96 … buying above this point on heavier volume would make for a good entry into a longer term option play on Lululemon … The target is at the $105 area (shown on chart --> 78.96 + 26.76 = 105.72 ).

This stock is included in the Investors Business Daily (IBD) top 50 stock list for relative strength and earnings per share rank.  In addition LULU is described as “a top company in its category of retail apparel”.

Zacks stated September 14^th ;  … “In the past week, every analyst estimate on Lululemon Athletica Inc. (LULU) has been revised higher for both this fiscal year and next. Such unanimous agreement shows why this retailer of yoga-inspired athletic apparel and accessories is a Zacks #1 Rank (Strong Buy) with solid aggressive growth potential.”

If this yoga apparel company hits it target it could really stretch a traders profits.  For follow-up on this trade and other trades like this, visit my website www.marketfy.com/product/options-scout