Today's setup is LULU (Lululemon) . On Sept. 4, the company beat EPS, but sharply cut full-year revenue guidance — triggering a classic knee-jerk selloff of nearly 22% in one day. After tagging a five-year low, the stock has been quietly basing and is starting to show signs of a recovery. For this trade, I'm consulting three technical indicators to build the case. RSI (Relative Strength Index) I'm starting with a classic technician's tool: RSI. On LULU, RSI dipped into oversold territory on Sept. 5 and recently pushed back above the 30 level on Sept. 17. That transition out of oversold is a common reversal tell—and it's exactly what we're seeing here. Directional movement index (DMI) The DMI has three components—DI+ (green), DI– (red), and ADX (blue), which measures trend strength. When DI

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