LULU trade ideas
Lessons of LULU Earnings (also RH and ADBE)LULU had made symmetry advancement prior to earnings to the high of 383. A little turn downwards on MACD. The line in the sand of the first retracement is 61.8 Fib level which also is at 50 EMA.
RH had a similar reaction as well as ADBE.
LULU earnings 12/10 @ 4:05pmLULU designs and retails athletic clothing for women, men, and female youth. Its apparel assortment, including items, such as fitness pants, shorts, tops and jackets, is designed for activities such as yoga, running and general fitness. The Company's fitness-related accessories include an array of items, such as bags, socks, underwear, yoga mats, instructional yoga digital versatile discs and water bottles. Lululemon athletica Inc. is based in Vancouver, Canada.
3rd Quarter October 2020 earnings announcement is tomorrow on 12/10 at 4:05pm
Earnings Whisper $0.95
Consensus: $0.86
Revenue: $1.01 Billion
LULU is showing bearish signals on rsi, volume ema and price action the past four days, plus it sure looks like a variation of a shrunken head and shoulders, lol. With that said, it's all going to come down to the fundamentals in the end. If there's anything short of a +$ earnings surprise, expect LULU to tank post market tomorrow. If, on the other hand, LULU pulls out stellar earnings, the share price could pop. Because I don't know what the earnings are going to be, I'm taking a bearish perspective with caution. End result range is between $340 - 400, which is quite an unhelpful spread to forecast LULU 12/11 price action, so a low risk 4-option strategy could be best. What I have in mind is buy $370 straddle 12/18 (put = $1875, call = $1300, total = $31.75) and sell a $350-390 straddle 12/11 (put = -$7.95, call = -$4.85, total credit = -$12.80). One case scenario, LULU closes below $350 or above $390 on 12/11 and you receive a $2k credit, and because the original trade cost you $1895, you make $105 profit per contract (not a great gain, but no loss). Another scenario is LULU misses passing $350 on the down side or $390 on the up side on 12/11 and you've positioned yourself for all the price action next week by getting a straddle for -$1280 discount. And finally, the more likely scenario is you can liquidate the calendar spread 4-option strategy at any point in pieces as the price action permits. Do your own due diligence, your risk is 100% your responsibility. You win some or you learn some. Consider being charitable with some of your profit to help humankind. Small incremental steps work : If you double a penny for a month it = $5,368,709. Good luck and happy trading friends...
*3x lucky 7s of trading*
7pt Trading compass:
Price action, entry/exit
Volume average/direction
Trend, patterns, momentum
Newsworthy current events
Revenue
Earnings
Balance sheet
7 Common mistakes:
+5% portfolio trades, risk management
Beware of analysts motives
Emotions & Opinions
FOMO : bad timing
Lack of planning & discipline
Forgetting restraint
Obdurate repetitive errors
7 Important tools:
Trading View app!, Brokerage UI
Accurate indicators & settings
Wide screen monitor/s
Trading log (pencil & graph paper)
Big organized desk
Reading books, playing chess
Sorted watch-list
Checkout my indicators:
Fibonacci VIP - volume
Fibonacci MA7 - price
pi RSI - trend momentum
www.tradingview.com
LULU - December 5, 2020Hot off Black Friday/Cyber Monday sales, look for Lululemon (LULU) to be active as we approach Thursday's earnings. Total American Cyber Monday sales soared to $10.8 Billion (largest e-commerce day in US history), and LULU is well positioned to take advantage given the recent demand for athleisure. After a strong month of November, watch for LULU to build momentum as we progress through the high-volume holiday season.
ABC Bullish Ascending Triangle Was in Rectangle but broke up from rectangle..
The top of the rectangle also provides support, was resistance but becomes support
Not a recommendation..but hide your stop from Mr Market (o:
LULU - over analysis?NASDAQ:LULU
long/short play with bullish bias
Anticipating a head and shoulder formation
Well SupportedWe are supported threefoldly.
1. 2(closed) windows(on 30th Sept. and 4th Nov.),
2. The bottom of the trading range between around 302 and 316 and
3. EMA.
LULU go higherLULU is my favorite brand of clothing. Because,1. I own a yoga studio 2. They are very comfortable 3. They accentuate curves
T1: 377
T2: 423
T3: 474
Stop at 308
Entry at 340 - 350
taking notice of symmetrical triangle inside pitchfork consolidating... i will be watching this week + next week.
ABC BullishPossible stop under C or under 307.8
Possible T2 399.1 to 420
Just an observation
This was trading in an ABC pattern earlier but C has changed..so be safe
LUL fell from a bearish rising wedge and has difficulty coming back
LULU good hold of 1-2 structure, target 400Good hold of bullish elliott structure, have confidence in a wave 3 move to the upside around 400. I'm personally looking on a slight pullback, and then a clear entry with a stop under the wave 2 low, for the trip to 400 or 420. Copyright Rohan Karunaratne 2020.
LULU TriangleLULU is getting closer and closer to a potential breakout upwards. It's at the bottom of the bottom arm of the triangle, so I would expect a small bounce then into a little bit more consolidation. Then it should break upwards for a solid more.
LULU 1D TRIANGLE BREAKOUTTriangles are repeatable trading chart patterns.
Triangles are consolidation chart patterns that can breakout either direction.
Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern.
What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart).
Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place.
Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement.
When you see descending Volume bars and descending ATR line (which indicates volatility) this shows
a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern.
Trade Management after there is a breakout candle close.
1 - Position size (compare volume bar to volume ma line).
a - Breakout candle must be 100% of volume average for a full position size.
b - If 75% of volume average then ½ position size. (To find 75% of Volume
look at the charts volume settings – divide smaller # into larger # = 75%+)
If not 75% then stand aside from the trade.
2 – If candle breaks out of a trendline, 15m before the close of the day prepare your buy/sell order.
Enter two trades. 1st trade will have a SL & TP. It will close automatically when the 1st TP is hit. 2nd
trade only has a SL and will be allowed to run. When 1st TP is hit move the SL to breakeven. Look
at ATR and prepare SL at 1.5 of ATR. Prepare 1st trade TP at 1 of ATR.
3 - SL for both trades will be 1.5 x ATR.
4 - 1st trade TP will be 1 x ATR.
5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price.
6 - When 1st TP hit – move 2nd trade SL to breakeven.
7 - Adjust the 2nd trade SL to follow price.
*8 – After Breakout candle – if price closes back into chart pattern close trade don't wait for SL to be hit.
*9 - When breakout candle is more than 1 ATR from breakout candle open.
a - Enter 1st trade at candle close with ½ position size.
b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open.
c – Price should pullback to that pending limit order for 2nd trade.
d – If Price returns back into chart pattern close trade before SL is hit.
