Lululemon Athletica's stock gambles up and down

Fashion

On December 1st, 2011 Lululemon Athletica (LULU) reported earnings and analysts, on average, expected them to be $0.25 on sales of $234.8 million. The yoga apparel maker beat expectations then and 10 days later, when stock traded 1.3%

above.

Lululemon

Athletica reported earnings of $0.27 per share on sales of $230.2 million, beating EPS estimates by $0.02 and missing revenue estimates by $4.6 million. Since the company's report, shares of Lululemon Athletica have risen from $47.17 to $47.80, representing a gain of 1.3% in the past 11 days.

Lululemon Athletica share prices have moved between a 52-week high of $64.49 and a 52-week low of $32.65 and are now trading 46% above that low price at $47.80 per share. Over the past week, the 200-day moving average (MA) has gone up 0.4% while the 50-day MA has declined 1.5%.
Potential upside of 17.8% exists for Lululemon Athletica, based on a current level of $47.33 and analysts' average consensus price target of $55.76. The stock should find initial resistance at its 200-day moving average (MA) of $50.43 and further resistance at its 50-day MA of $51.33
In the past 52 weeks, Lululemon Athletica share prices have been bracketed by a low of $32.65 and a high of $64.49 and are now at $47.33, 45% above that low price. Over the last five market days, the 200-day moving average (MA) has gone up 0.4% while the 50-day MA has declined 1.5%.

Nevertheless, on Tuesday, Lululemon Athletica traded in a range y that spanned from a low of $44.22 to a high of $48.49. The shares fell 6.12%, which took the trading range below the 3-day low of $45.18 on volume of 3.8 million shares. Often times after large one-day declines, short-term traders may play for some degree of mean reversion.

According to Zacks analysts, shares of Lululemon Athletica are currently trading below their 50-day moving average (MA) of $51.32 and below their 200-day MA of $50.47. Look for the MA to provide resistance for a short-term rebound in the shares. SmarTrend currently has shares of Lululemon Athletica in an Downtrend and issued the Downtrend alert on November 18, 2011 at $49.76. The stock has fallen 4.1% since the Downtrend alert was issued. SmarTrend expects the share price to rebound toward the $45.18 resistance level.

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