Has Lululemon Athletica (LULU) - Get Report stock stretched too far?

That's the question investors are likely asking ahead of the company's earnings results Wednesday. But the charts say the rise in shares of the yoga apparel maker have only just begun. If Lululemon stock, which is near its 52-week high, can break near-term resistance at around $69 per share, good luck chasing it.

The shares aren't cheap. Lululemon shares closed Monday at $68.75, gaining 2.25% and adding to year-to-date gains of around 31%, compared with a 3.2% rise in the S&P 500 (SPX) index. Those gains have pushed the company's price-to-earnings ratio to around 36, or 15 points higher than that of the average stock in the S&P 500. Even on a forward basis, its P/E of 32 is almost twice the forward P/E of the average stock in the S&P 500.

At the same time, those metrics imply Lululemon will deliver 15.5% growth in profits, which is more than three times that of the average stock in the S&P 500. In other words, the stock is priced for strong growth.

From a technical perspective, Lululemon stock is setting up for another run at its all-time high of around $81, which would translate to gains of 14% to 18%. Take a look at the chart below, courtesy of TradingView.

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The chart above shows all of the qualities you should look for in a growth stock, starting from its 28% rise from its February low of around $54. Lululemon stock now trades above all three key moving averages, after reclaiming both the 20-day and 50-day averages a week ago. During that span, the stock has successfully consolidate from its gap in March (the pink oval) following its solid earnings report. That's a strong sign, suggesting that current Lululemon holders are still intact.

What's more, the stock has broken each resistance level in its path, starting at the $60 mark, then $64 and then $66.72 per share (top blue arrow). This leaves $69 per share as the next resistance level. Although the P/E argument might present a fundamental headwind, the company could move beyond that that with a beat and raise on Wednesday.

And assuming Lululemon delivers on earnings, $81.50 per share, or an 18.5% rise, becomes the next long-term target. In the near term, given that the company's technicals are predicting a sustained uptrend, you could aim for $75.50, a rise of about 10% from Monday's close, and also its consensus analyst 12-month price target.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.