Is Ulta Beauty Sitting Pretty?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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