Lululemon Bearish Signs

Published on Friday, 22 June 2012 04:57 Written by TradersHuddle Wire

New York, June 22nd (TradersHuddle.com) - Shares of Lululemon Athletica Inc. (NASDAQ:LULU) ended the trading session lower by $1.27 or -1.97% 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 determined by calculated support defined at $59.64 and by the resistance level at $65.67, which should be used by traders planning their next move.

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