Near Key Levels: Lululemon
Published on Thursday, 06 December 2012 06:52 Written by TradersHuddle Wire
New York, December 6th (TradersHuddle.com) - Lululemon Athletica Inc. (NASDAQ:LULU) closed the the trading session at $68.59, near its 50 day and 200 day moving averages currently set at $71.52 and $68.60 respectively. Lululemon's price action places the stock below these important levels, which makes it difficult to be bought, as it will certainly face resistance as it approaches these important moving averages.
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 latest price action range, defined by a peaks and troughs algorithm, placed calculated support at $65.09 and resistance at $73.70. Traders should monitor these levels, as they provide insight into the latest price dynamics in Lululemon.
If traders want to establish a position on Lululemon, given the heavy resistance expected near the 50 and 200 day moving averages, a trade might be evident as the stock manages to break these moving averages. However, until the break materializes buying the stock is nothing different than flipping a coin.