Pull Back FishingLooks like some were not happy with earnings.
There was a possible head and shoulders pattern prior to the deep pull back.
Now there is a falling wedge which can be bullish when price breaks up and out of the upper trendline. A falling wedge slopes against the trend and converges at the apex. LULU has not broken upper trendline of the wedge.
The falling wedge pattern is interpreted as both a bullish continuation and bullish reversal pattern.
The differentiating factor that separates the continuation and reversal pattern is the direction of the trend when the falling wedge appears. A falling wedge is a continuation pattern if it appears in an uptrend and is a reversal pattern when it appears in a downtrend.
Falling wedges are formed
No recommendation
