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 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 ( ) rising toward the 200-day . 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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