Shares of e.l.f. Beauty (ELF) were sharply higher Wednesday as traders and investors reacted to "blow out" quarterly results. Let's check the charts and update our strategy.
In this daily bar chart of ELF, below, I can see a strong upward trend over the past twelve months. Prices did correct lower in July as per my July 18 review but the rally resumed in short order. Today's gap higher refreshes the uptrend and emboldens the bulls.
ELF trades above the rising 50-day moving average line and above the rising 200-day line. I would consider ELF as extended (overbought) should it reach twice the level of the 200-day line or around the $156 area. The trading volume has been strong since late May.
The On-Balance-Volume (OBV) line should make a new high for the move up today to continue its year-long rise. The Moving Average Convergence Divergence (MACD) oscillator is turning upwards to a fresh outright buy signal.