During Wednesday's night fast-paced Mad Money Lightning Round one caller asked about Ulta Beauty (ULTA) . "You can buy more Ulta Beauty. I like that stock very much," said Jim Cramer.
Let's check out the charts of ULTA.
In the daily bar chart of ULTA, below, we can see that the shares have been in a "pretty beautiful" uptrend the past 12 months. Prices are trading above the rising 50-day moving average line and dips below this indicator have not been long sustained. The slope of the slower-to-react 200-day moving average line is positive and was last tested in late October.
The On-Balance-Volume (OBV) line has been steady/neutral since April but that has not stopped ULTA from climbing to new highs. The Moving Average Convergence Divergence (MACD) oscillator has been above the zero line for most of the past year. Near-term, the MACD oscillator is in a take profits, sell signal.
In the weekly Japanese candlestick chart of ULTA, below, we can see an impressive rise from early 2020. Prices are trading above the rising 40-week moving average line.
The weekly OBV line has been moving higher since March of 2020. The MACD oscillator is bullish but has narrowed in recent weeks.
This daily Point and Figure chart of ULTA, below, is projecting the $352 area as a possible lower target.
In this weekly Point and Figure chart of ULTA, below, we see a potential $479 price target.
Bottom-line strategy: 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 above we can still recommend the long side of ULTA with a $350 sell stop and a $479 price target.
