LULU – Getting in Shape for a Move Higher

Although Lululemon (LULU, $58.84, up $0.07) does not yet look healthy on the daily chart, I have TWO standout zones for possible support on the weekly. 

Take a look at the weekly chart below.  The first zone comes in at the $55.92 – $57.29 area. The second at $53.61 – $54.85.  So far I have only seen some minor buy signals against the first zone.  As long as price holds above one of these zones    we can look at some bullish options strategies against it.  I will consider myself wrong if both of those support zones are violated!!

An initial  target area I would look at comes in at the $69 – $71 area.

LULU has Weeklys, but it might take a while to confirm.  If support holds, an at-the-money call with January expiration might be worth considering.  If not confirmed by next week, use Jan 24th (Extended Weeklys) or regular February expiration.