Lululemon Athletica (LULU) shares moved higher in premarket trading on Friday after the 澳洲幸运5官方开奖结果体彩网:activewear retailer reported higher-than-expected profit and outlined efforts to accelerate the introduction of new products, offsetting weak sales and a 澳洲幸运5官方开奖结果体彩网:cut to its full-year outlook.

The global retail chain’s stock has lost around half of its value since setting a 澳洲幸运5官方开奖结果体彩网:record high in December as a slowdown in 澳洲幸运5官方开奖结果体彩网:consumer spending amid persistent inflation and a series of missteps, such as the recent troubled launch of its Breezethrough leggings, weighed on investor sentiment.

Lululemon shares were up 4.5% at $270.65 about two hours before Friday's opening bell.

Below, we review the 澳洲幸运5官方开奖结果体彩网:technicals onꦚ Lululemon’s chart and identify important post-earnings price levels that are worth watching out for.

Descending Channel Breakout Test

After gapping below the 澳洲幸运5官方开奖结果体彩网:200-day moving average (MA) in late March, Lululemon shares have traded within a 澳洲幸运5官方开奖结果体彩网:descending channel that has kept the price entrenched in a multi-month downtrend. More recently, a pre-earnings rally stalled earlier this week, with the stock finding 澳洲幸运5官方开奖结果体彩网:resistance near the pattern’s top trendline and 50-day MA. However, the premarket move sets the stage for a poten♔tial retest of the area on Friday.

Following the athletic apparel maker's quarterly report, investors should monitor four key chart areas, three of which also closely align with key 澳洲幸运5官方开奖结果体彩网:Fibonacci retracement levels wꦫhen applying a grid from the December hig𒁃h to August low.

Key Lululemon Chart Levels to Watch

Friday’s projected open looks set to test the closely watched $272 area, where the price will likely reencounter selling pressure near the descending channel’s top 澳洲幸运5官方开奖结果体彩网:trendline and downward sloping 50-day MA.

A decisive breakout above this level could see the shares rally to around $293, roughly the same area as the 23.6% Fibonacci retracement level. This level on the chart may also encounter resistance near the May low, which matches a ♛series of comparable trading levels in July.

Further buying could drive a move up to the $335 region. This area, which sits just below the 38.2% Fibonacci retracement level, may attract selling interest around the prominent April 澳洲幸运5官方开奖结果体彩网:swing low and early June 澳洲幸运5官方开奖结果体彩网:swing high.

A longer-term uptrend could see a retest of the key 50% Fibonacci retracement level at $371, an area on the chart where the shares may also find investors willing to take profits near the April 澳洲幸运5官方开奖结果体彩网:countertrend peak positioned toward✃ the top of🌠 the descending channel.

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