Going Long LULU at $72.42 for a Swing Trade
December 3, 2012 - 12:50pm
I'm swing-trading Lululemon (LULU) long at $72.42.
The market is at an inflection point, particularly on the SPY, where there is a notable area of resistance overhead as you can see in a recent group discussion post i did today. I'm not sure if we'll pullback here or not, but if we do, I don't foresee it being anything major and would likely just be enough to establish a new higher-low for the sake of technicalities on the charts.
But the trade is LULU sets up nicely because there is a well defined double bottom and has confirmed that pattern and consolidated nicely above the neckline as seen on the chart below. Also worth noting is the respectable reward-to-risk ratio that is 2:1 in our favor.
I am also still long CIG and a bit underwater on that trade right now (about -2%). If the stock hits 11.87, I'll be out of the trade without hesitation.
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