Brian Shannon on $LULU (Nov 3, 2026)
LULU does not appear to be a Nike-style bottom: it failed to hold the 2007 IPO anchored VWAP a couple months ago, and massive volume did not bring capitulation; the stock has done nothing. A patient investor could stop under the recent low and maybe it rebuilds, but the weekly chart is a giant mess, still struggling at the breakdown level, and better opportunities exist.
Jump to any passage
So, how about we get your thoughts on Lululemon? It's not I don't know that. Look, it's not the same thing as Nike. I get it. I mean, Nike and Lululemon are two different companies, but in in terms of retail names getting, you know, basic basically shellac for a very long time and pulling back and trying to find a bit of a bottom.
Made one call on Nike. What are your thoughts on Lulu? Um, this is also something that every single tech stock, it just seems like they're all getting beaten up, right? So, there's still this rotation story going on.
People are looking for other sectors to get into. Do you see anything interesting in Lulu? Could it be a Nike?
It doesn't appear to be. I mean, if you go back to the anchored VWAP from the IPO in 2007, in 2007, we saw that it had been support for a while over the years, it's been a good level of support, and I would have wanted to see it hold that anchor uh back here just a couple months ago in order for it to turn around.
The thing about Nike was and and what really led me to believe that it was um a bottom is what we had mentioned was the volume. It was the biggest volume in over 25 years on negative uh numbers.
And that was, you know, basically what, you know, what's known as capitulation. This might have been capitulation here in um I'm sorry, I thought I switched to Lululemon. We would have looked for capitulation in Lululemon here with this massive volume, but instead the stock has pretty much done nothing.
So, it looks like, you know, maybe if you're super patient, if you're an investor and you want to put your stop let let's say underneath this low, this is the most recent really low you could protect yourself against.
Um maybe it can rebuild. But I I think there's just better opportunities out there. when you look at this weekly chart, it's still a giant mess and we're still having trouble with the price level from where it broke down with that massive volume.