Lululemon's (LULU) unsold inventory is piled up to the rafters!
With a likely recession looming in 2023, this does not bode well for their stock.
The following monthly chart of LULU is signalling further volatility and weakness ahead, with the potential formation of a bearish Head & Shoulders pattern, as well as the Balance of Power flipping to the Sellers.
A drop and hold below the neckline at 245.00 could prove to be catastrophic and see a plummet to its H&S target at 50.00.
The Retail ETF (XRT) is already weak, and the Sellers are in charge, once again, as shown on the following monthly chart.
Major support sits much lower than its current price, at 50.00. A drop and hold below could see price plunge to 40.00, or even lower to 20.00.
