• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing

A Large Double Bottom Pattern on e.l.f. Beauty Suggests Higher Prices Ahead

Their partnerships with Target and Walmart continue to perform well.
By BRUCE KAMICH
Jun 01, 2020 | 12:09 PM EDT
Stocks quotes in this article: ELF, TGT, WMT, ULTA

For his second "Executive Decision" segment of Mad Money Friday night, Jim Cramer spoke with Tarang Amin, chairman and CEO of e.l.f. Beauty (ELF) , which found itself in a proxy fight with activist investor Marathon Partners.

Amin said ELF is performing well. The declines the company saw in 2018 were a real wake-up call. Since then, they've focused on five new initiatives and have enjoyed five consecutive quarters of year-over-year sales growth.

When asked about the effects of the pandemic, Amin said they did initially see declines, but over the past four weeks consumption is up 11%. He said their partnerships with Target (TGT) and Walmart (WMT) continue to perform well. Both Walmart and Ulta Beauty (ULTA) are expanding their ELF footprint within their stores.

We haven't looked closely at the charts of ELF since the the middle of last year , were we wrote that "ELF has been making a base pattern the past 11 months and an upside breakout seems likely. Traders could probe the long side at current levels risking to $11 while looking for gains to around $21." Traders got two chances to take profits around $20. Let's check out some up to date charts of ELF.

In this daily bar chart of ELF, below, we can see a very steep decline for shares from February into March. Prices bounced in late March and then made a "classic" retest of the March low in early April. ELF has since rallied nicely and is back within "striking distance" of the highs.  Prices are above the rising 50-day moving average line and the bottoming 200-day moving average line.

The trading volume has been active since February and the On-Balance-Volume (OBV) line has been rising from April.

The Moving Average Convergence Divergence (MACD) oscillator is in a strong bullish alignment above the zero line.

In this weekly bar chart of ELF, below, we can see what looks like a possible double bottom pattern from around $8. A weekly close above $20 will give us a breakout. Prices are above the bottoming 40-week moving average line.

The weekly OBV line shows a similar double bottom pattern and the MACD oscillator has crossed to a cover shorts buy signal.

In this weekly close only Point and Figure chart of ELF, below, we can see a potential upside price target in the $33 area.

Bottom line strategy: ELF looks like it can rally further. Aggressive traders could go long at current levels risking a close below $15. Add to longs above $20 looking for gains to the $33 area longer-term.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Economy | Investing | Stocks | Technical Analysis | Trading | Personal Products | Mad Money | Executive Interview

More from Investing

The 10 Personality Traits of Successful Traders and Investors

James "Rev Shark" DePorre
Jun 25, 2022 10:00 AM EDT

Superior market players share these characteristics in their emotional makeup.

Does the Big Bounce Mean More to Come? Let's See What Drove the Move

James "Rev Shark" DePorre
Jun 24, 2022 4:42 PM EDT

Much of the rally can be attributed to structural reasons, not fundamentals, technicals, or even macro ones.

MongoDB Is Poised for a Rally

Bruce Kamich
Jun 24, 2022 2:15 PM EDT

Here's our initial upside price target for MDB which provides a general purpose database platform.

See That Down the Road? It's the Big 'Green' Bubble, Ready to Pop

Jim Collins
Jun 24, 2022 1:30 PM EDT

Environmental, social, and corporate governance has created a monster and gullible investors should hit the brakes on their EVs and run from the Washington technocrats while they have the chance.

Treat Becton, Dickinson and Company With Care

Bruce Kamich
Jun 24, 2022 1:25 PM EDT

BDX gets an upgrade, but are the charts healthy enough to recommend?

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 08:55 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The 10 personality traits of successful traders an...
  • 12:08 PM EDT STEPHEN GUILFOYLE

    Stocks Under $10

    As a Portfolio Name Agrees to a Merger, Here's Our...
  • 10:44 AM EDT PAUL PRICE

    My Very Best Pick for the Next 12 Months

    American Woodmark . It rarely gets better than th...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2022 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login