Lululemon and Nike Bounce Off Lows
This morning, leading Canadian yoga apparel maker Lululemon Athletica Inc.(Nasdaq:LULU) started the morning lower trading below $110.00 a share. The early decline seemed to be caused by a downgrade. The stock has surged higher by 35.0 percent since making a low pivot on June 6, 2011 at $82.36 a share. This downgrade is understandable as the stock is very extended on the daily chart at this time. Short term traders can watch for intra-day resistance around the $112.85 level.
Nike Inc.(NYSE:NKE) is another leading athletic footwear and apparel manufacturer that has surged higher recently after reporting earnings. This stocks remains very strong on the charts by trading above all of its major moving averages. The stock looks to have hit some daily chart resistance around the $90.00 level which was the March 2011 high. Nike stock is also very extended on the daily charts and looks as if it needs to pullback and consolidate before making another move to the upside. Short term traders can watch for some minor intra-day support around the $89.00 level. The intra-day resistance levels for Nike stock will be around the $91.25 area should the stock trade higher.