LULU Analysis for 11.18.2007

LULULEMON ATHLETICA INC. - LULU

More bad news for Lululemon.

Daily chart shows 5 waves up into $60.70 area high. IF we have 5 waves up, THEN look for abc 3 wave retracement of the last move up. We have now hit the .618 fib target. Currently a key LIS is now support (old resistance becomes new support). The chart also shows a bearish head and shoulders pattern which forewarned of possible reversal. The last move up off the $36.75 area support appears to be a bearish flag. Thursday and Friday of last week saw more selling pressure. IF this is indeed a bearish flag, THEN look for a lower low -- and possible test of the $28.36 low.