Shares in Lululemon hit a fresh record high after the athletic and leisure apparel group smashed earnings forecasts while boosting its outlook for this year’s profit. The company posted revenue that surged 61% from last year’s pandemic lows.
Even as supply disruptions grip the world, the company increased its full-year earnings outlook to around $6.26 billion in sales. The company’s share price had been trading in a range for much of the past year but has now broken through.
In the chart of Lululemon’s share price below it’s clear to see the trading range between ~$378.00 and ~$288.00 (between the two black horizontal lines).
Source: Admirals MetaTrader 5, #LULU, Weekly – Data range: from 24 Dec 2017 to 9 Sep 2021, performed on 9 Sep 2021 at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.
As the price has now broken through the top of the trading range, the bulls seem to be in control – especially with the weekly bullish engulfing candle formation that has developed.
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Technical analysts would typically measure the height of the range and forecast that as target level from where price breaks through.
In the case of Lululemon’s share price, this target price would be around ~$531.00 which represents a possible 30% uplift from the break of the range.
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