Time to buy this once high-flying apparel stock? Jay Woods looks at the charts ahead of earnings

This week I want to share with you two of the ugliest charts you'll ever see. It's the same stock but we use multiple time frames to paint the suboptimal picture. The stock in question was all the rage up to and through Covid but peaked in December 2023. Since that time shares are down more than 75% below its all-time high of $500 and now sit at a critical make-or-break moment from a technical perspective. That stock is none other than Lululemon . Shares have been stretched to the limits and will face a critical test when the company reports earnings next week. Fundamentally, slower sales and rising competition have chipped away at Lululemon's once dominant position in athleisure. Outside of those concerns, you can add tariff and inflation fears as well as several quarters of lowered guidance to that list. They've also been criticized for lack of product innovation and are in the midst of a leadership change. Former Nike executive Heidi O'Neill will officially take over in September and hopes to lead a bounce back. But let's get back to the charts. The first chart is the stock on a one-year daily basis. Here we see a textbook downtrend. A perfect series of lower highs and lower lows. However, I am forever the optimist and looking for signs of hope and from a risk/reward perspective there may be some brewing. The good Shares have rallied off their recent lows. …