LuluLemon reported earnings this past week. All the analysts predicted great things for this stock and it beat on the per share earnings and revenue, but because of less than expected forecast for 4th quarter, the stock took a dive! Is it a stock that will recover?
I don't follow LULU so I haven't any insights into LULU's financials. But I've been tangentially aware enough of LULU's meteoric rise (a nearly 400% in 2.5 years!) that you gave me a little chuckle imagining a LULU recovery! Truly, though, good luck with your decision-making re: LULU.
"Recover" is subjective; depends where you bought and how much pain you can take. It was way overbought (too much public involvement) and now there's been a change of character. Profile-wise the value-area high (VAH) is at about $208 and the point-of-control (POC) is currently at about $192. Next week's pivot is just a bit higher at $225.74. Best case, the December monthly pivot will very probably get hit at $215.50. It may try to test the gap next week and consolidate into the end of the year, but I don't think it'll be making new highs anytime soon and I'd be cautious, that high-volume off the top was quality (smart-money) selling and/or the smart money not supporting the floor. The dumb money doesn't initiate selling a good ER, they react to the smart money, the funny-mentals be damned, and may sell like madmen when they get close to breaking even on a retest. If they don't sell it off on a test higher, then sit tight with a trailing stop. 195-minute (1/2-day) bars: