Lululemon Expecting a Break Out?

Published on Friday, 03 September 2010 05:24 Written by Christopher Lynn

New York, September 3rd (TradersHuddle.com) - Shares of Lululemon Athletica Inc. (NASDAQ:LULU) closed the trading session at $34.36 near its 200 day moving average currently set at $35.54. Lululemon's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 200 day moving average.

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.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $31.08 and calculated resistance at $39.75. These levels are being closely watched by traders, as they provide great reference points for the latest price dynamics in Lululemon shares.

Traders should evaluate their trade if they want to establish a position on Lululemon given the resistance expected as the stock approaches the 200 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes, traders need to exercise patience. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price action reference points.