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Lululemon (LULU) Facing Key Resistance

I have been bearish on LULU, noting downside risk towards 36.50-37. However, price has rallied to challenge this bearish outlook as it is now testing a key falling resistance.

LULU Daily Chart

(click to enlarge)

- While, I am not very confident of the bearish outlook anymore, I am still not convinced that the market is bullish. 
- The daily chart shows a market that still has lower highs and lows (when talking about the major highs and lows. 
- Also, price is still holding below the 200-day simple moving average (SMA), and a falling resistance.
- I think as long as LULU is under 60, the bearish outlook remains valid.
- A break above 60 would clear these resistance factors and would convince me the market is NOT bearish, and rather sideways-bullish. 
- However, if price and the RSI develops a bearish divergence while price is still under 60, I would anticipate a pending bearish swing