Lululemon Athletica Inc (US: LULU) Corrective stance has been on since August 2020. However, recent technical indicate that the Lululemon is heading for a strong breakout to the upside:   

1. The larger descending channel reflects the corrective nature of the stock and if we zoom out into larger time frame, it is actually a bullish flag in the making.
2. The 2^nd touch of the lower bottom of the channel is a smaller inverted head and shoulder that have since confirmed its pattern after the stock breaks above the resistance neckline at US$330.00 with a bullish Marobozu candle. It also confirms the bullish engulfing candle on Wednesday.
3. Ichimoku is showing “Three Golden cross” signal after the Tenkan-Sen and Kijun-Sen bullish cross and. Chikou-Span is strongly above the candles and the Senkou-Span A and B just performed a bullish kumo twist.
4. Price may face some throwback retracement at US$355.00 region.

*Timeline of the trade is 12 weeks from the date issued as the technical is showing clear potential bullish uptrend in the long run.

CHART LEGENDS

Ichimoku Kinko Hyo

Red dotted line = 9 Periods Tenkan-Sen

Blue dotted line = 26 periods Kijun-Sen

Green Line B= 52 periods Senkou Span B

Pink Line A = 26 periods Senkou Span A

Black line = 26 periods Chikou Span. Lagging line