A “Coiled Spring” Effect Could Happen Soon

Last Friday, I invited you into my closet to discuss the remarkable pricing power at Lululemon Athletica (LULU).

If you missed this intimate look inside my closet, you can check it out HERE.

But for today, I’d like to take a deeper dive into the current LULU chart formation.

As you’ll see, the chart target reflects the pricing power narrative – which fits right into the reason I think LULU is primed for a breakout.

So, let’s dive in…

First and foremost, here’s the current LULU chart…

Potential "Spring" Effect on Lululemon

As you can see, LULU broke above $380 in early December 2022 – only to fall down to a range between $300 and $310 for most of the 2023 calendar year.

The longer LULU remains pinned between $300 and $310, the stronger the breakout will be when it finally happens.

I call it a “coiled spring” effect…

The more you coil a spring… the more aggressive and violent the breakout will be once the spring gets released.

That’s precisely what I think is taking shape in LULU right now.

And here’s the trigger catalyst…


Yes, men.

You see, after years of being inside and lounging around the house in sweatpants… men across the country are now facing the reality of going back to work or attending more social events. And as that’s happening, they’re updating their wardrobes – which starts with new pants.

But they no longer want any old pants.

They want LULU pants.

Ones they can wear to work… out to dinner… or even on the golf course… all of which come with minimal maintenance (such as ironing them or taking them to the dry cleaners).

And that’s your big opportunity…



For years, LULU has catered to women to sell its $100 yoga pants. But now, just imagine if it can capture a powerful new market in which men also jump on the bandwagon and start buying $100 LULU pants. As Wall Street starts to realize that this is indeed happening, it could very well be the trigger that “uncoils” the LULU spring – and sends LULU back up to retest the December high of $380.

NOTE: If you enjoy this analysis and you’d like more of this market intelligence, then we invite you to level up and join Trade of the Day Plus. Right now, we’re actively recommending a company we call “The Last Great Value Stock”… while it’s still under $2 per share.

For all the reasons we like it – and think it’d still be undervalued even at $50 – check out the presentation HERE.



  • Tech Dip Buying Is a Thing. With Microsoft (MSFT) having a fantastic pop last week, it’s clear the sector is worth paying attention to. We’ll be watching some other tech giants closely in The War Room this week. Tracking.
  • Barron’s Likes Farmland. In its latest issue, Barron’s made a compelling case for agricultural companies like Deere & Company (DE), Caterpillar (CAT) and Agco (AGCO). All three names are worth monitoring this week.
  • Another Trade of the Day Plus Pick With Potential. Barron’s is also bullish on Boot Barn (BOOT), predicting 50% upside at current levels. A retest of $85-$87.50 seems to be in the works.
  • Apple Sees Premarket Rise. The tech giant got a 2% boost after Goldman Sachs initiated coverage of the stock with a “Buy” rating and a $199 price target.