Lululemon Price Levels to Watch as Stock Soars on Strong Earnings, Outlook | Global News Avenue

lululemon sport (Lulu) shares surged on Friday after the athletic apparel retailer reported Fiscal third-quarter results beat analysts’ expectations and raised its full-year outlook.

Company’s fiscal 2024 guidance income It is expected to be between $10.45 billion and $10.49 billion, an improvement from the previous forecast of $10.38 billion to $10.48 billion. While the company’s third-quarter revenue in the Americas grew just 2% from a year earlier, the retailer’s international business grew 33%, driven by strength in China.

Lululemon shares rose 18% to $407 in midday trading on Friday, leading gains in the S&P 500 and Nasdaq Composite indexes. Even with today’s gains, the stock has lost about a fifth of its value since the start of the year, in part due to Company product categories.

Below, we take a closer look at Lululemon’s chart and use technical analysis Point out important price levels that deserve attention.

Head and Shoulders Bottom Breakout

Lululemon shares are established Head and Shoulders Reversal Prior to a breakout of the pattern between May and November neckline Earlier this week, the company released its quarterly report.

also, 50-day Moving Average (MA) has shifted upward to the 200-day moving average, setting the stage for potential golden cross— Bullish chart signal indicating the beginning of a new uptrend.

Let’s identify three important overheads resist Areas where stocks could come under selling pressure also highlight a key support level Investors can look for buying opportunities in pull back.

Important Resistance Areas to Watch

Investors should watch how the price reacts to the $389 area. The stock may find resistance near this area horizontal line Connect multiple crests and troughs on the chart from May to October last year.

A decisive close above this area could see the stock rise to $419, with investors likely looking to buy in near the October 2023 peak as well as gap down candlestick March appears on the chart.

further bullish price action A rebound to around $468 is likely. This area could attract selling pressure near a trendline connecting a series of similar trading levels on the chart from December to March last year.

Key support levels to monitor

period profit takingthe $335 level is worth watching. Investors may be looking for buying opportunities near this level in April swing lowwhich also forms the neckline of the inverse head and shoulders pattern.

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As of the date of this writing, the author did not own any of the securities mentioned.