Lululemon Athletica (LULU) was up 3% Wednesday morning, as CEO Laurent Potdevin resigned from his position, in part due to a relationship with a female subordinate.
This was not the sole reason for the resignation, but one instance in which Mr Potdevin fell short of the company’s integrity standards, lacking of leadership behavior in key situations.
LULU Chief Resigns, Stock Strengthens, Rising Phase Resumes
Our analysis of LULU’s market cycles indicates that the stock is in a strong pattern, with a near-term target of $85.
However, we are also cognizant of a potential coming correction, with a move to $74 likely into the May cycle low.
The market cycles on the chart below are designated by the black semicircles at the bottom of the chart.
LULU Stock Chart (Weekly Bars)
Visit our site for more on our approach to using market cycles to analyze stocks.
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