Time to buy this once high-flying apparel stock? Jay Woods looks at the charts ahead of earnings Lululemon’s stock has fallen more than 75% from its all-time high, presenting a critical technical challenge as the company approaches its earnings report. Fundamentally, slower sales, increased competition, and leadership changes have impacted its market position, compounded by tariff and inflation concerns. Technical analysis reveals a downtrend on the daily chart but potential bullish momentum indicators, while a 10-year weekly chart shows an ominous rounding top formation sitting on major support around $120.

• Lululemon stock is down over 75% from its December 2023 peak, trading at a critical technical level.
• Fundamental challenges include slower sales, rising competition, tariff/inflation fears, lowered guidance, lack of product innovation, and a leadership change.
• The daily chart shows a downtrend, but momentum indicators (RSI, MACD) have turned bullish, suggesting near-term upside potential.
• The 10-year weekly chart displays an eight-year rounding top formation resting on major support around $120.
• A break below $120 could lead to a drop to $80, while holding this level could see a rally towards $170.
• Three scenarios are presented for the upcoming earnings: holding support and rallying, consolidating in the support zone, or a major breakdown below $121.