LULU: Bears marooned on an island bottom

Question: Can you please take a look at LULU as a possible bottoming play. Looks like it might be turning the corner if it can clear $226.

Lululemon (LULU) looks tactically bullish on a pullback after completing a September into December island bottom pattern.

This bullish island reversal has several features:

1. A high-volume downside gap on September 5

2. A period of sideways price action on lower volume from early September into early December

3. A high-volume upside price gap on December 12

The island bottom suggests that bears are marooned (aka trapped) below the December 12 upside gap from 202.11 down to 188.50, which is key support that is holding so far. Rising 26- and 40-day moving averages at 204.44 and 193.58 reinforce this gap as potential support on dips.

The first resistance is 219.45 (declining 200-day moving average) to 225.98-228.39 (mid December peak and 38.2% retracement of the June 2025 to September 2025 decline), but the bullish island reversal suggests that LULU can see further strength beyond this resistance toward 249-250 (50% retracement) and 271-275.60 (61.8% retracement and the lower end of the big downside gap from early June 2025).

It would take a decline below the December 12 upside gap to negate this constructive tactical setup on LULU.

Chart 1: Lululemon Athletica (LULU) (top) and volume (bottom): Daily chart