Lululemon returns lower - Analysis - 06-06-2022

Lululemon's stock declined 0.59% in the last session or 1.78 points, settling at 300.80, with trading volumes approaching 4 million shares, above 10-day at 2.5 million shares, amid the dominance of the downward short-term trend, with negative pressure from the 50-day SMA, with negative signals from the RSI after reaching overbought levels, hinting at negative divergence. 

The stock declined even after the company reported forecast-beating sales , with direct sales becoming a larger portion of total yields. 

We expect more losses for the stock, targeting the support of 251.51, provided the resistance of 331.50 holds on.

Expected trend for today: Bearish