LULU – Mixed Bias – Swing / Position
First: Determine Your Goal Before analyzing LULU, decide which lens you’re using: - Investor: Focused on fundamentals and whether current price is misaligned with future value. - Trader: Focused on structure, demand, and clearly defined risk. The conclusion changes depending on the objective. Investor View (Fundamental / Long-Term): From an investor standpoint, the key question isn’t whether this is the bottom — it’s whether there’s a disconnect between today’s price and the company’s future fundamentals. LULU is roughly 60% below ATH, and at these levels the market is pricing in significant pessimism. If the business can stabilize growth, protect margins, and maintain brand strength over time, then current price may not reflect future value. Short-term volatility remains, but long-term risk/reward is materially better than it was near highs. Trading View (HTF Structure & Execution): Price has already reached and reacted from major HTF demand (128.85–177.77), which is why downside momentum has slowed. That reaction created two internal demand zones at 178.90–191.85 and 160.97–173.23. Structurally, this isn’t a clean bullish setup. It’s more of a location-based opportunity than a trend continuation, so conviction stays moderate. - If price retraces into either internal demand zone, small, controlled DCA only - No aggressive sizing unless structure improves and buyers prove control - Ultimate invalidation: loss of 128.80 — if that breaks, HTF demand has failed and the long thesis is off Notes - This is risk-defined, not momentum-driven. - Conviction increases with structure, not lower price alone.