LULU's recent bounce is untrusted; lower levels within the channel are expected to be tested before a true turnaround, supporting a short position.

Let's uh look at band and then I I also see Lululemon being asked about

I'll actually go to a bigger chart here on Lulu just so we can get a better view of it. I guess the question is, is it finally turning around? And I would say uh I don't know because it looked we've had this kind of price action before where it looked like it was putting in a a bottom or a base of some kind uh only to trade up briefly and then go lower later.

Yeah. So, really quickly 13, we've done a lot of extensive charting here in Lulu. By the way, for those interested, this came from the happy hour. Now, one of the things that we've talked about is that this region that it was in, we actually broke away, kind of back tested this region and moved lower, but the move lower gave us support at the top end of the region right beneath it.

And so, it actually looks like we're bouncing off of that channel.

To your point though, I don't know if this is going to mark the bottom, if this is actually going to mark the bounce. If this gets sold right back into this channel, I would expect us to chop around in this for some time before we have any significant bounce.

Yeah. And I think one of the uh go the the targets that uh you know people in happy hour including myself had for this one was $80. We we like that area uh because if you look to the left on uh the price action of this prior to its huge run that had went on beginning in in 2018 there was a lot of sideways consolidation for pretty much seven years.

Um and that the high of that consolidation was always topping out around 80. So this area that's uh basically between I I want to say like 37 to to $80 that's a big area of demand.

So I think we're going down there and and we'll get support down there.

Um just I think for now it's it's you know if you wanted something that's going to kind of guide uh guide you on when uh the selling's over probably keep a an eye on on some of these weekly moving averages. um maybe the 50 week 151 and a half.

Um well, I think once we uh recapture that and start closing over, I think that could uh be the indication that this is finally turning around. Um but for now, it's it just looks like it's

I'm not This is how I'll summarize this 13. I'm not sure I trust this bounce. I think those levels that you just gave that are within that channel probably get tested before this thing marketably turns around.

Um, looks like a Lulu situation to me. And Lulu was surprisingly strong since the earnings are probably a short here. You know what? I might reshort Lulu right here.

Hold on. Let me short Lulu again. You're shorting Lulu again? Yeah, I am shorting Lulu again. That trade desk that trade desk report reminded me of the Lulu report.