Ulta Beauty had a big run between late 2014 and the middle of last year. It crashed in August 2019 and remained under pressure through the coronavirus selloff in March.
Since then, it’s squeezed into a range and may now be nearing a breakout.
The first thing that stands out on the chart is the large triangle converging around its current price. ULTA had a similar pattern in 2014 before launching on a 200%+ rally.
Next is the bullish gap from August 28. That followed a decent quarterly report with comp sales shrinking less than feared. It seemed to suggest customers have remained engaged and interested despite the pandemic.
A third chart pattern is the 50-day simple moving average (SMA) rising toward the 200-day SMA. Given the current paces, there could be a “Golden Cross” in the next 7-8 sessions.
ULTA still hasn’t given clear confirmation and may retest the bottom of the triangle closer to $219. But it’s a longer-term growth name that may start drawing more interest – especially into the holiday-shopping season.
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Since then, it’s squeezed into a range and may now be nearing a breakout.
The first thing that stands out on the chart is the large triangle converging around its current price. ULTA had a similar pattern in 2014 before launching on a 200%+ rally.
Next is the bullish gap from August 28. That followed a decent quarterly report with comp sales shrinking less than feared. It seemed to suggest customers have remained engaged and interested despite the pandemic.
A third chart pattern is the 50-day simple moving average (SMA) rising toward the 200-day SMA. Given the current paces, there could be a “Golden Cross” in the next 7-8 sessions.
ULTA still hasn’t given clear confirmation and may retest the bottom of the triangle closer to $219. But it’s a longer-term growth name that may start drawing more interest – especially into the holiday-shopping season.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.