With a month-to-month acquire of 14.64%, Lululemon Athletica Inc. (NASDAQ:LULU) may very well be trying to finish the 12 months robust. The inventory has misplaced by an identical margin within the final one 12 months, with the recoveries giving hope of a possible Santa Claus rally. The quarter outcomes will inform if LULU maintains the uptrend for a possible return to $386 or end at $410.
Buying and selling at $371 after a slight correction, traders await with enthusiasm Lululemon’s quarter outcomes on December 08. Wall Road has earmarked earnings per share of $1.95 within the quarter, a year-over-year enhance of 20.4%. The corporate is predicted to report revenues of $1.8 billion or £1.47 billion, a rise of 24.4%. Will Lululemon shock with optimistic retail information?
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Lululemon has notoriously exceeded earnings estimates in its earlier 4 quarters. For the final quarter, the corporate posted a shock 18.28% enhance in earnings to $2.20. The EPS exceeded estimates of $1.86 per share. A repeat of this earnings pattern may appeal to consumers to the attire inventory. Traders will even be on the lookout for post-earnings steering as key triggers for the subsequent value degree of LULU.
LULU slides forward of earnings after a bullish month
LULU Chart by TradingView
On the technical outlook, LULU has slid after hitting resistance at $386. The RSI comes from the overbought degree, which means consumers are taking income after a bullish month.
The extent to look at because the earnings linger is $366. If earnings come robust and steering excites, this may very well be an necessary reversal zone. The extent additionally coincides with the 20-day shifting common and ascending trendline.
What you must do forward of earnings
We advocate shopping for LULU after the earnings report. Keep watch over the entry of consumers at $366 if the outcomes are thrilling. $386 would stay the instant goal. Nevertheless, LULU can journey to $410 on the present momentum.
Conversely, if the earnings disappoint, LULU may slide to search out help at $340.