Is Ulta Salon (ULTA) about to start the next leg higher? (January 12, 2016)
ULTA TSLA SP-500
Lets just take a quick look here at Ulta ( NASDAQ:ULTA ). This is a stock that tends to go sideways a lot. The happy news is, that in between the sideways moves, it tends to go up. You see a nice trend here, and here, here, I don’t know if you want to say here or not. But here’s the thing, from a timing standpoint, and by the way, this company already reported earnings back here so we don’t have that to worry about, but this stock has been trading sideways for over a month. That kind of sets up another move higher. I LIKE stocks that break out on no news; then the news is that there’s some buying aggression here. So with Ulta ( NASDAQ:ULTA ) this is what I would say: 188.50 is like a breakout, that’s when you should be looking at this stock.
I’m not saying when the stock hits 188.50 just buy it. Just know that would be a new high for the stock. And the goofy things about stocks that hit new all-time highs, or even 52-week highs, they tend to keep hitting them for a while, so they’re typically not just a one day wonder. So with Ulta ( NASDAQ:ULTA ) watch that level. If the stock starts breaking out, then you know that this stock is more than likely going to make an attack on 200. On the other hand the mean is the 50-day moving average, and I would say, that’s down at 176.74, we’ll say 177.00. I’m going to put an alert in here for like 178.00. If the stock pulls back to 178.00 watch and see how this behaves. Maybe it will find some support at the 50-day moving average. Stocks that come out of volatility squeezes, I would rather already be in them, because then you make more money. So if this stock pulls back to the 50-day moving average and find support. Then maybe that’s worth taking this thing for a ride.
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