LuLu Lemon (LULU): What's Your First Impression on this Chart?

SUMMARY

Here is a weekly chart of LuLu Lemon (LULU) and the first sight of the vertical move is quite amazing. The key question being: Is it sustainable? Not for long. But don't immediately think that it'll crumble right away.

When Elliott Waves are used, it's apparent that white wave 3 is proably in progress and at curren price height, it's too short to be complete. I believe there's likely to be a minor correction (blue wave 4) but white wave 3 has more to go. This kind of mania can go longer than the liquidity limit of any short seller of LuLu. I have the white wave 3 at 1.618 of wave 1.

The MACD should rise more into the overbought zone; decline for blue 4 and rise again but perhaps not a higher high. Price, meanwhile, is likely to rise to a higher high; hence, a bearish divergence could trigger the process of the white wave 3 top.

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