Cosmetics brand Ulta Beauty Inc. (ULTA) has rallied to a new 52-week high Friday in the wake of a big profit beat and an increased sales forecast Thursday night. Let's check out the charts and indicators.
In this daily bar chart of ULTA, below, we can see that prices have been trading up since late October and above the rising 50-day and the bullish 200-day moving average lines.
Trading volume has been mixed -- declining first before increasing -- but the daily On-Balance-Volume (OBV) line shows a bullish rise into December. The trend-following Moving Average Convergence Divergence (MACD) oscillator is in a bullish alignment above the zero-line.
In this weekly Japanese candlestick chart of ULTA, below, we can see an impressive rally over the past three years. Prices have clearly broken out to new highs and trade above the rising 40-week moving average line. The weekly OBV line has made a new high to confirm the new price gains. The Moving Average Convergence Divergence (MACD) oscillator oscillator is bullish and moving upward.
In this daily Point and Figure chart of ULTA, below, we can see a potential upside price target in the $523 area. Note -- a trade at $444 would likely weaken this chart and should be used as a sell stop level.
In this weekly Point and Figure chart of ULTA, below, we see a target in the $679 area. One step at a time...
Bottom line strategy: Shares of ULTA are in an uptrend but I always like to have a defense, so traders and investors should have a sell stop at $444.
