e.l.f. Beauty (ELF) looks poised to break out on the upside from a large base pattern. Let's see if the charts are pretty enough to go long.
In this daily bar chart of ELF, below, we can see that we can draw a neckline across $14 from September to now. Every rally to $14 has failed but the On-Balance-Volume (OBV) line has been rising the entire time including making a new high this month. This bullish pattern of more aggressive buying points to an eventual upside breakout.
Prices are above the rising 50-day line and the bottoming 200-day line. The Moving Average Convergence Divergence (MACD) oscillator recently moved above the zero line for an outright go long signal.
In this weekly bar chart of ELF, below, we can see that prices made a long slide from $32 down to around $7. Prices have doubled from that extreme low. ELF is now above the bottoming 40-week moving average line.
The weekly OBV line has been positive since March and the MACD oscillator gave a buy signal last month when it crossed above the zero line.
In this Point and Figure chart of ELF, below, we can see a base or accumulation pattern with a potential upside price target of near $21.
Bottom line strategy: 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.