Here’s your trade on Ulta Salons (ULTA). (June 26, 2015)
I’ll be honest with you, right now, this is my best idea, I’m giving it to you for free; this is it: Ulta ( NASDAQ:ULTA ) has been drifting sideways forever it seems like. The 50-day moving average, note it got ahead of itself relative to the 50-day moving average. Look what happened, we love it when stocks do this: here was the open; the 50-day was clear down here, that’s a pretty big excursion.
It just drifts sideways, sideways channel, all the while, because these prices are up higher than average over the last 50-days, the slope steepens, and then pretty soon it just gets right in the middle of the price and starts to flatten out. Now this is just about sideways, just about flat, and the stock is perking up, and it’s perking up on volume. I would say this is perky; this is more perky than Katie Couric used to be back in her perky days.
So I want to watch and see how this stock trades when it gets up to say, 160.00, but I wouldn’t even wait to buy it then. Instead, I would want to note that this company does not report earnings until the end of August. It’s the end of June right now, so this stock has plenty of time to do what it’s going to do before there’s an earnings report.
My bet is, the way this has been consolidating, my bet is the move is to the upside. Especially when the tape has been so bad, but Ulta ( NASDAQ:ULTA ) is up just about near it’s all time closing high. I think you can go ahead and buy this stock now, keep a stop right about there. So you’re in, in anticipation of the breakout, and if the stock instead falls lower you haven’t lost that much money for playing. So that’s my trade on Ulta ( NASDAQ:ULTA ); that’s where I get all my cosmetics and skin care products; more information than you want to know; Clarisonic.
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