Lululemon (LULU) Has Big Empty Space Below $65.50

I am watching LULU again today.  It was one of the big leaders last year and since mid December has been consolidating in a bullish flag pattern.  

The obvious trade is to go long if LULU would go through $70 to the upside.

Where I see warning signs however is if the pattern would break.  

That is, should LULU break $65.50 it would constitute a failed pattern, and I've discussed this before…failed patterns such as the one in LULU can lead to quick and steep reversals in the other direction.  In the chart below, note thee empty space below $65.50.

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