Bye Bye Lulu (Just in the near term not forever)
Updated
A break back below $295 spells trouble for my favorite pair of leggings.
Good risk/reward set up as we are consolidating below structure in a bearish way.
H&S topping pattern in the making after a long term (TCT) Thrust, Consolidation, Thrust has played out on the monthly.
Lulu has over-produced based upon last earnings call with inventory rising 85% and if we are nearing a recession then more downside is to come for this beloved brand.
In addition, Viori has emerged as possible competition for LULU by taking some market share, especially amongst middle to upper aged men. (I know this isn't the target market for Lulu but more and more women I know are giving it a try.)
On the weekly:
I've got an alert set up for a break below the solid turquoise line
Good risk/reward set up as we are consolidating below structure in a bearish way.
H&S topping pattern in the making after a long term (TCT) Thrust, Consolidation, Thrust has played out on the monthly.
Lulu has over-produced based upon last earnings call with inventory rising 85% and if we are nearing a recession then more downside is to come for this beloved brand.
In addition, Viori has emerged as possible competition for LULU by taking some market share, especially amongst middle to upper aged men. (I know this isn't the target market for Lulu but more and more women I know are giving it a try.)
On the weekly:
I've got an alert set up for a break below the solid turquoise line
Note
LULU warning about weak 4Q earnings...dropped 10% at open to gap down below my teal line. Short initiated with SL above teal line.Note
Short initiated at an average price of 295.75. SL is at 301.80. Can't get back into structure which would be the teal line.Note
Chart broke back into structure so I manually stopped myself out for a small loss. SPX breaking out to the upside today of a bear flag most likely means bullish action for a bit. Will continue to keep my eye on this one though.
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