Lululemon | LULU | Long at $118.50

May 19

TECHNICAL ANALYSIS

• Lululemon LULU touched the bottom of my selected "crash" simple moving average (green lines). As predicted from my original entry / exit, the stock isn't super strong during these economic times. I still think this is the case. I would not be surprised if the upcoming earnings call drops the stock to $50-$80 and closes out many of the looming open price gaps on the daily chart. At that level, it will have entered my "major crash" simple moving average area (gray lines). So, I am treating this entry at $118.50 as a starter position and planning to cost average down if LULU collapses to the "major crash" area - which is personally a major buy.

INSIDERS

• Mixed buying and selling (neutral signal)

GROWTH & VALUE

• Weakness anticipated in 2026, but continued steady growth thereafter. The weakness is "already priced in" or a collapse / major buy opportunity is ahead.
• P/E = 9x (undervalued?)
• Intrinsic Value = $215 - $283, based on multiple models.

ACTION

• Due to recession fears growing and economic weakness, entry at $118.50 is a starter position with additional entries planned if the stock collapses and drosp into the "major crash" simple moving average area. Targets are kept low.

TARGETS INTO 2029

1. $133.00 (+12.2%)
2. $160.00 (+35.0%)

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May 27

Trade active

Target #1 reached resulting in a +12.2% gain.