Technical Take: Lululemon Sharply Higher

Lululemon Athletica inc. LULU shares are trading sharply higher by $10 (16 percent) at $69.87 in Thursday's session.

The catalyst for the massive rally is a Q3 beat of $0.04 along with a $4.1 million sales beat. The company raised FY 2016 EPS guidance and announced a $100 million share buyback.

After a sharply higher open, it continued in that direction until it finally found sellers at $72.70. That exceeds its September 2 high, when the issue tanked from its previous day close of $76.66 to $68.57 after an inline Q2 report.

Since reversing course, it has continued to make lows for the session with the current one standing at $69.36.