Lululemon was under pressure after the bell Tuesday.
The stock fell nearly 1% in extended trading despite a top- and bottom-line beat in its recent quarter. The shares have already fallen 9% this year after riding the athleisure wave to rally 50% in 2020.
Matt Maley, chief market strategist at Miller Tabak, said that recent weakness has put the stock in a difficult position.
"On a technical basis it has made a lower high followed by a lower low earlier this month so if … we get another lower high, lower low, it's going to be very bearish for the stock," Maley told CNBC's "Trading Nation" earlier Tuesday. "It's a key technical juncture for the stock, and how it trades after these earnings is going to be very important how it trades for all the second quarter."
That key level to watch is $285, which corresponds with the closing low set earlier in March, said Maley.
"If we break below that, that's going to give it its second lower low and … that will confirm that there's a major trend change in the stock, not just on a short-term basis but on an intermediate-term basis as well," said Maley.
Lululemon would need to fall another 10% to break below $285.
Boris Schlossberg, managing director of FX strategy at BK Asset Management, is still backing Lululemon, though. He said success in one key market could be very bullish for the company and stock.
"China has a lot more consumer spending at this point, and they also have a very strong emphasis on well-being. That alone is creating a very strong market for Lululemon in China, which could be a multiyear growth market. That's why I think it has tremendous amount of potential, even though the stock is very expensive and trading 67 times trailing earnings at this point," Schlossberg said during the same interview.
Lululemon generates 12% of total revenue outside of North America.