Lululemon Broke Resistance

Published on Monday, 30 July 2012 09:00 Written by TradersHuddle Wire

New York, July 30th (TradersHuddle.com) - Shares of Lululemon Athletica Inc. (NASDAQ:LULU) closed the session at $61.58 just above calculated resistance at $59.84. The stock moved to what appears to be a higher range, spurring attention from momentum buyers.

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 stock was trading in a well defined range with support at $54.00 and resistance at $59.84. Given that this range was broken, traders will be closely monitoring Lululemon's price action to gather clues on the future direction.

From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Lululemon is still near the broken resistance level, traders will be focusing on the $59.84 level to see if the stock holds the breakout without rolling over.