Ulta Beauty Holds a Gentle Pullback
Ulta Beauty jumped to new highs last month. Now it may be sitting pretty after a gentle pullback.
Notice its runup into earnings after the bell on August 25. The beauty-products company didn’t disappoint because profit, revenue and guidance all surprised to the upside. However, the stock was ahead of itself and quickly got rejected above $410.
Now, three weeks later, prices have calmed. Notice the series of long tails under $370, with closes above. Yesterday was a bullish outside day as well.
Second, consider how the 8-day exponential moving average (EMA) has remained above the 21-day EMA throughout this period of consolidation.
The stochastic oscillator also dipped to an oversold condition, from which it’s now rebounding.
Fourth, look back to ULTA’s July 2019 high of $368.83. The current period of consolidating seems to be building new support above that old resistance.
Finally, the Census Bureau this morning reported a surprise increase in retail sales. Despite fears of the delta variant, the consumer isn’t rolling over yet. That could discretionary favor names like ULTA – especially into the holiday season.
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Notice its runup into earnings after the bell on August 25. The beauty-products company didn’t disappoint because profit, revenue and guidance all surprised to the upside. However, the stock was ahead of itself and quickly got rejected above $410.
Now, three weeks later, prices have calmed. Notice the series of long tails under $370, with closes above. Yesterday was a bullish outside day as well.
Second, consider how the 8-day exponential moving average (EMA) has remained above the 21-day EMA throughout this period of consolidation.
The stochastic oscillator also dipped to an oversold condition, from which it’s now rebounding.
Fourth, look back to ULTA’s July 2019 high of $368.83. The current period of consolidating seems to be building new support above that old resistance.
Finally, the Census Bureau this morning reported a surprise increase in retail sales. Despite fears of the delta variant, the consumer isn’t rolling over yet. That could discretionary favor names like ULTA – especially into the holiday season.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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