LULU Begins our Anticipated Move
by Mike Paulenoff
August 9, 2014 • 12:00 AM EDT
On Tuesday (Aug 5) I noted in our Trading Room the bullish set-up in Lululemon Athletica (LULU) since its mid-June EPS debacle. I wrote, "All of the action since its high-volume (capitulation) low at 36.25 has the right look of a maturing base formation that will provide the launch pad for a sustained intermediate-term recovery (bull) phase."
Since adding LULU to our model trading portfolio in the 39 area on Tuesday, the company's founder Chip Wilson decided to sell half his stake to a private equity firm, which goosed the stock price from under 39 to above 41 in aftermarket trading Thursday.
Thursday's action completed a May-August base pattern in the aftermath of its bear phase from May 2012 (81.00) to May 2014 (36 1/4).
LULU should consolidate Thursday's gains above 40 prior to upside continuation that hurdles 43-44, on the way to 49-50.
Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international
markets, plus key ETF component stocks in sectors like technology, mining, and banking.
Sign up for a Free 7-day Trial!
More Top Calls From Mike
Last Monday afternoon (October 21), Mike alerted MPTrader members to a Goldman Sachs upgrade of optical products retailer Warby Parker (WRBY) to Buy from Neutral. Goldman attached an 18.00 target price to the stock. At the time of Mike's post to members, WRBY was trading at 17.55 in reaction to the GS upgrade, up 6% from the prior close, and just 2.5% from Goldman's 12-month target price.
On the afternoon of March 13, 2024, I posted the following heads-up to MPTrader members about important price action in WPM (Wheaton Precious Metals), my go-to ("favorite") name for Silver Mining within the larger Precious Metals Mining Complex:From a silver-gold perspective, let's notice that WPM strength is pushing up against its near-term resistance line in the vicinity of 45.80.
Over one month ago, on Monday morning, 9/09/24, I posted the following NVDA update for our members:My near-term pattern work makes a compelling argument that the corrective downleg from the 8/16 high at 131 is nearing downside exhaustion and completion in and around 100 (Friday's low was 100.95). That said, unless and until NVDA climbs above 106.30 to 108.
On August 27, 2024, I reviewed my near and intermediate-term technical setup on copper (gold, silver, oil) producer FCX (Freeport-McMoRan) for MPTrader members, writing:My attached Daily Chart shows the 30% correction from the May 2024 high to the August 2024 low, which my pattern work argues ended the retracement of the first upleg of a new bull phase in FCX that began at the 10/23/23 low of 33.08 and ended at the 5/20/24 high of 55.24. The August 2024 upmove from 39.08 (8/05/24) to 46.
On August 5, hours before its after-market earnings report, Mike Paulenoff posted a bullish alert on AI-juggernaut PLTR, writing:"Bottom Line Technically: As long as any forthcoming weakness on a closing basis remains above key support lodged between 19.60 and 21.50, PLTR has the right look of nearing the completion of the correction from its 7/08/24 high at 29.83, and the initiation of another advance that will extend the upside potential off of a two-year base-accumulation setup."The stock, trading at 23.