This thread/idea takes over from the previous one, where we initiated a long position at 55. We assume a long position at 60/share to take into account the call conversions (please see related idea below).
FUNDAMENTALS ON THE UP AND UP LULU surprised positively on both top and bottom lines Most notable improvement = Gross margin expansion by 4.2% Fundamental improvement --> Long-awaited re-rating in the stock Broker upgrades are still feeding through post earnings release
TECHNICAL IMPROVEMENT Long-term turning positive Medium-term positive Short-term positive, overbought Expect some (time) consolidation in the visible term We look for a close above $70 for further sign of strength Next hurdle: To close the gap formed between 71.65 and 75.12
NEXT TARGET = 80/SHARE Existing holders are already in the money and should stay long New investors could go long here (1/2 position) and buy more (1/2 position) on a pull back towards $66
RISK/REWARD STILL COMPELLING TARGET = 80/SHARE STOP-LOSS = 66/SHARE REWARD/RISK = 2.5X (assuming new position initiated at $70)
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The stock is consolidating to erase its previous overbought condition. This is taking place in low (nearly half) average volume and LULU closed on Friday exactly at the 200MA, just above our stop-loss. Maintain stop-loss in place at 66/share and expect a rebound from here off the 200MA, after a week of consolidation.
交易结束:到达止损
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Trading and closing below our 66 stop-loss --> Stop this trade and move on.