LULU update

Then and now charts;

lll nov 18 2011lulu jan 19 2014

LLL seems to have disappeared so the two charts are not entirely comparable. Nevertheless the gist of the argument was that Lululemon  was a sell almost two years ago. It did not pan out perfectly as the stock stayed in suspension for that entire time, on average, right around the $68 mark. Frustrating, but arguable the correct call.

This has to go lower, as indicated then, $42 would be a minimum and around $30 very likely if not even lower. Presently we are probable in wave 3 of C, so a rebound for wave 4 could occur at any time. Care should be taken when trying to play that move as it is not clear what degree this wave 4 might be, that is 4 of 3 of or 4 of C.

To remain bullish, the stock should not drop below about $30 as that would cause overlap, at least in the larger count presented in the chart.