Lululemon Had a Bearish Engulfing Candle

Published on Friday, 27 August 2010 00:51 Written by Danny Miller

New York, August 27th (TradersHuddle.com) - Shares of Lululemon Athletica Inc. (NASDAQ:LULU) ended the trading session lower by $1.38 or -3.73% from its previous close. Lululemon's price action formed what is considered to be a bearish engulfing candlestick chart pattern.

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.

Lululemon's current stock range is defined by calculated support defined at $37.30 and by the resistance level at $39.75, which should be used by traders planning their trades.

Traders wanting to establish a position in Lululemon stock need to pay close attention at the bearish engulfing pattern, since it could mark a trend reversal to current Lululemon shares price action. The Bearish engulfing pattern is a leading warning sign, therefore traders should closely monitor price action for indications of a trend reversal. Below an Engulfing Bearish Candle Illustration: