Lululemon is expected to report receipts after Bell Thursday.

The one-time darling of the coronavirus pandemic has come under pressure this year as investors fear a slowdown in demand as consumers switch from tracksuits to swimsuits. Stocks are down 8% in 2021 after a 50% rally in 2020.

Matt Maley, senior marketing strategist at Miller Tobacco, said $ 343 is an important level of trade that could serve as a breakout or breakout point for Lululemon.

“The stock, although actually in a downtrend since last September, has been rebounding well since early March and has made a nice higher-lows, higher-highs sequence. And just recently it hit another higher lows.” Maley told CNBC’s “Trading Nation” on Thursday.

“If this earnings report can kick it into trading above that $ 343 level, it will give it another higher high and get it above its 200-day moving average stock, giving it a lot more upside momentum,” said Maley.

Lululemon was last trading at $ 319 per share. It would have to gain 8% to hit $ 343, a level it was last traded at in late April.

Delano Saporu, founder of New Street Advisors, is optimistic that Lululemon can drive growth after the pandemic.

“When you see people opening wallets, you see how much money is being spent, which is a good sign for premium brands and Lululemon is a premium athleisure brand. I think that’s going to be one of the sticking points of why you wouldn’t just buy – I think that’s a huge sticking point, a big reason investors will be returning to this stock, “Saporu said in the same interview.

The analysts surveyed by FactSet expect earnings of 91 cents per share for the quarter ended in April, far more than 22 cents in the previous year. Sales are said to have increased by 73%.

Disclosure: Saporu holds LULU.

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