Focus Stocks

Trading Idea: What to Expect with Lululemon Breaking Support

New York, January 24th (TradersHuddle.com) - Shares of Lululemon Athletica Inc. (NASDAQ:LULU) closed the trading session at $66.21 below calculated support at $66.30. The stock broke down technically, raising concerns as the move might trigger additional selling.

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 stock was trading in a well defined range with support at $66.30 and resistance at $77.96; given that this range was broken traders will be closely monitoring the stock's price action for clues of direction.

From a technical perspective, it can be expected that previous support becomes resistance, as the new range gets defined. However, $66.30 will remain in focus as Lululemon's price action places the stock near the broken support. Traders will be waiting to see if it can bounce back and return to its previous range.

Traders wanting to establish a short position in Lululemon can do so if the stock breaks the intraday low, or if the stock bounces back and selling materializes again at previous support of $66.30. However, if traders want to build a long position, the best entry point to do so is when the price action takes the stock back to calculated support.



Related Articles

    Related Partner Headlines

      JIM CRAMER wants to work for YOU. JIM does the research -- YOU get email alerts each time he trades. JIM provides access to his actual portfolio -- YOU can use it to guide your portfolio strategy. Try Jim's Action Alerts PLUS for FREE!

      TradersHuddle Search

      Stock Search:

      Site Search:

      Technical Scans

      Recent Trading Ideas

      Latest Partner Headlines

      Stock Market

      Loading
      Chart
      o Dow Jones 17,712.66 ▲34.43 (0.19%)
      o S&P 500 2,061.02 ▲4.87 (0.24%)
      o NASDAQ 4,891.22 ▲27.86 (0.57%)
      INDEXDJX:.DJI

      Dow Jones

      Company ID [INDEXDJX:.DJI] Last trade:17,712.66 Trade time:4:33PM EDT Value change:▲34.43 (0.19%)
      INDEXSP:.INX

      S&P 500

      Company ID [INDEXSP:.INX] Last trade:2,061.02 Trade time:4:33PM EDT Value change:▲4.87 (0.24%)
      INDEXNASDAQ:.IXIC

      NASDAQ

      Company ID [INDEXNASDAQ:.IXIC] Last trade:4,891.22 Trade time:5:16PM EDT Value change:▲27.86 (0.57%)

      In The Wires

      Copyright © 2013 TradersHuddle.com. All Rights Reserved.