Lululemon Athletica (NASDAQ:LULU) was up 3% Wednesday morning, as CEO Laurent Potdevin resigned from his position, in part due to a relationship with a female subordinate.
According to several media reports, this wasn't the sole reason for his resignation, but only one of the instances in which Potdevin fell short of the company’s integrity standards, lacking of leadership behavior in key situations.
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 upcoming 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.
