Lululemon (LULU) saw its stock price soar nearly 1,000% from its 2017 low to its 2023 high, but it has since plummeted 82% from that peak as of October 2026. Despite several opportunities for investors to buy during dips, the stock continued to decline, entering bear market territory after a 20% drop in early 2024.
The stock's 14-week RSI fell below 30 in April 2024, indicating oversold conditions, yet this did not halt the downward trend. Analysts at CappThesis have identified a potential inverse head and shoulders pattern, which could signal a breakout if the stock can rise to a target of $119, with a risk management stop set at $99.
However, previous attempts to break out have largely failed, emphasizing the need for this breakout to generate sustained upside. If successful, it could lead to a larger basing pattern that might challenge the long-term downtrend.
The current situation presents an initial opportunity for investors, but the focus remains on whether LULU can demonstrate the technical characteristics of a sustainable bottom before making any significant investment decisions