e.l.f. Beauty, Inc. (ELF) was reviewed earlier this year where I wrote, "The prospects for ELF have improved but I would still like to buy strength. Traders could go long ELF on a close above $24 risking a close below $21 looking for gains to the $29-$30 area."
With hindsight we can see (first chart, below) that ELF has not been able to close above $24 and a rally to $22 in late February was rejected. Let's turn on the makeup lighting and look closer at the charts one more time.
In this daily bar chart of ELF, below, we can see a downtrend in force the past 12 months. Prices are below the declining 50-day moving average line and the declining 200-day line.
The daily On-Balance-Volume (OBV) line has been in a decline telling us that sellers have been more aggressive for months. The Moving Average Convergence Divergence (MACD) oscillator has been below the zero line all year and is in a bearish mode now.
In this limited weekly bar chart of ELF, we can see the downtrend and the downward sloping 40-week moving average line. The weekly OBV line peaked in August and has been in a downtrend. The weekly MACD oscillator has been below the zero line its entire history.
In this Point and Figure chart of ELF, below, we can see a nearby price target of $20.72. A decline to $18.49 should open the downside.
Bottom line: I cannot find any positives on the charts of ELF. A close below $17.75 is likely to open the way to further declines. Remain defensive.