e.l.f. Beauty ( ELF) posted an earnings beat Wednesday evening and traders have pushed the stock to a new 52-week high Thursday. The beauty care business seems to be very resilient.
Let's check out the charts.
In this daily bar chart of ELF, below, I can see that prices have climbed four-fold in the past 12 months. Prices just touched the rising 50-day moving average line and then gapped higher this Thursday. The slower-to-react 200-day moving average line is in a strong upward trend and intersects at $60. I would consider ELF extended (overbought) if or when it gets to $120 as it would be twice the level of the 200-day line.
The daily On-Balance-Volume (OBV) line shows a long rise to confirm the price gains we have seen so far. The Moving Average Convergence Divergence (MACD) oscillator was correcting down to the zero line but is now turning upwards again.
In this weekly Japanese candlestick chart of ELF, below, I see a bullish picture but that could change in the weeks ahead. Prices are trading above the rising 40-week moving average line. The weekly OBV line is in a long positive trend but shows some weakness from the middle of April. The MACD oscillator is bullish but has narrowed in recent weeks.
In this daily Point and Figure chart of ELF, below, I can see an upside price target in the $138 area.
In this weekly Point and Figure chart of ELF, below, I see an upside price target in the $113 area.
Bottom line strategy: I just gave you a bullish analysis of ELF but my recommendation is to become a scale-up profit taking on ELF in the $113 to $120 area. This is the area from the weekly Point and Figure target to double the level of the 200-day moving average line.
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