Ulta Beauty (ULTA) will be reporting fourth quarter earnings on Thursday. We last checked in on the charts on September 23, writing "In our review of the charts of ULTA on Sept. 10, we wrote that traders should 'Continue to hold those longs and look for $460 on the upside. Raise stops to $345.' Looking at the charts we can still recommend the long side of ULTA with a $350 sell stop and a $479 price target."
Traders would have been stopped out in late January. Let's check on how things look today.
In this daily Japanese candlestick chart of ULTA, below, we see a mixed picture. Prices are making higher lows from January to February and maybe now in March but prices have yet to make higher highs.
The trading volume is featureless and the On-Balance-Volume (OBV) line just made a new low for the move down telling us that sellers of ULTA have remained more aggressive. The Moving Average Convergence Divergence (MACD) oscillator has moved up to the underside of the zero line but it has not crossed above it.
In this weekly Japanese candlestick chart of ULTA, below, we see a mostly bearish picture. Prices have been trading below the 40-week moving average line for several weeks.
The OBV line has weakened since October. The MACD oscillator is close to the zero line.
In this daily Point and Figure chart of ULTA, below, we can see a potential upside price target in the $467 area. A trade at $388 is really needed to refresh the uptrend.
Bottom line strategy: I have no special knowledge of what ULTA will report on Thursday. The charts and indicators are not (yet) giving me a strong signal(s) to be a buyer. I would stand aside for now.
