Dave Barnhart breaks down Lululemon's post-earnings move, noting the stock is stuck between $118 and $122 despite billions in volume. With ATR at $4.46, he maps downside targets around $99 and lays out bullish zones above $102 and bearish zones below $98 for traders to watch.
Chapters
Look at Lulu. First largest trades in the last month. Biggest one here, $570K here at 120, and then the other one, $428K at 118. So between 118 and 122, a couple billion dollars worth. So you can see here, August 12th, you a large print here, and then we've just been ranging in between these prints, right? So it's really difficult to tell what their intention was here, except if you drew a box around that. Hindsight's 20/20. Sometimes, sometimes you can tell. Other times. It can't, but passive volume didn't close above any of these prints here. This this high then just tanked. We're down $21 right now. The ATR is $4.46, so we're down. What is it? Three and a half times this ATR, so we're down to $99. Look at that giant one. So let's trade it intraday and see what's going on. We're below all my pivots and cams, so it's just free space and major dollar levels. We're going to be bullish above 102. Let's get above this S5. This is resistance right here, so you want this to be support. 102.50. 104, 105, 106.62. S4, 107.50, 110, 111.33. S3, it's also my 200 exponential moving average right there. On the downside, we're going to be bearish below 98. Let's get below here if you want to get in. If it's rolling over with increasing volume and breaks below here, then you can get in probably around 99. I picked 98, it's early. 97, 95, 92.50, and 90. I did mention the ATR was $446. So I'm just going by the major dollar levels, half dollar levels, and just be careful, be careful with that and scale out as needed.
