Ulta Beauty’s chart might look like a tangled mess lately. But a longer-term view suggests it may be sitting pretty.
First, consider the breakout in August as the beauty-products company jumped to new all-time highs. It was extended at the time, resulting in a sideways consolidation for the next five months.
But what’s the bottom of its range during that time? ULTA has consistently bounced around $368, closely matching its earlier record price in July 2019. Is the stock fashioning new support at an old high?
Third, notice how the shears undercut the previous low on December 20 before rebounding. They then chopped slightly higher last week, producing an inverse head and shoulders pattern at the key level.
Next, the 200-day simple moving average (SMA) is approaching from below as potential long-term trend line.
Finally, there are signs of ULTA being oversold, judging by both stochastics and the Keltner Channels displayed above.
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This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
First, consider the breakout in August as the beauty-products company jumped to new all-time highs. It was extended at the time, resulting in a sideways consolidation for the next five months.
But what’s the bottom of its range during that time? ULTA has consistently bounced around $368, closely matching its earlier record price in July 2019. Is the stock fashioning new support at an old high?
Third, notice how the shears undercut the previous low on December 20 before rebounding. They then chopped slightly higher last week, producing an inverse head and shoulders pattern at the key level.
Next, the 200-day simple moving average (SMA) is approaching from below as potential long-term trend line.
Finally, there are signs of ULTA being oversold, judging by both stochastics and the Keltner Channels displayed above.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradingView is not affiliated with TradeStation Securities Inc. or its affiliates. TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.