Lululemon Athletica, Inc LULU will release its financial results for the third quarter after market close on Thursday.

When the Vancouver-based apparel giant reported its second-quarter results on Sept. 1, the stock was up over 11% at the start of the following trading day, but encountered a group of sellers that caused Lululemon to drop 3.75% from its opening price close .

For the second quarter Lululemon printed a big beatand reported adjusted earnings per share of $2.20 compared to the consensus estimate of $1.86. The company reported revenue of $1.87 billion, beating the median estimate of $1.77 billion.

For the third quarter Analysts value Lululemon will report earnings per share of $1.96 on sales of $1.81 billion.

Ahead of the event, seven analysts voted with adjusted price targets, with each company raising its price target. The lowest new price target is $395 and the highest is $542.

The reaction Lululemon receives following the gains will likely be the determining factor as to whether the stock trades in bullish or bearish territory for now. From a technical standpoint, Lululemon is likely to move higher on the daily chart on a possible bullish flag pattern.

Of course, holding stocks or options over earnings pressure is akin to gambling, as stocks can be bullish on a loss of earnings and bearish on a drop in earnings. Options traders, particularly those holding short-term calls or puts, take on additional risk as the institutions writing the options increase premiums to account for implied volatility.

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The Lululemon Diagram: Lululemon reversed into an uptrend on October 13th and has since maintained a consistent series of higher highs and higher lows. Lululemon’s recent higher high was printed at $386.70 on Dec 2 and its latest confirmed lower low was made at $366.39 on Tuesday.

• Most recently, during Lululemon’s rise higher, the…