$LULU broke out of the rectangle channel with a huge gap on +ve earning news on 12/8. I have been watching this set-up for quite a bit now and today it presents a good case of buying. I like to trade these set-ups with a stop that is located at midway of the gap length. Price targets are usually 80-100% of the gap length. I like Vertical call options since they present low risk choices for such trades.
Notice the channel with clearly defined resistance and support lines in 12/7 chart.