This chart of Ulta Beauty (ULTA) is a thing of beauty. All we need is a breakout! (February 17, 2017)
ULTA
Here is a Free video here on Ulta Beauty ( NASDAQ:ULTA ). Here is why: This is a thing of beauty. We zoom out and look at the weekly chart. This stock has just been the gift that kept on giving for a while here. A long, long period of consolidation. Absolutely tradeable, but a long period of consolidation, very, very long base. And then it has finally broken out and now we have got another base that has gone on for quite a while. But if you look at this, first of all, earnings are not an issue they are not until next month, almost a month away and so we will deal with that when the time comes. But if you look at this NOW you see a volatility squeeze. The stock trading in a really, really tight range, but it is also in a SLIGHT uptrend; it is not too steep.
When you see a volatility squeeze at the top of a really, really steep uptrend, a lot of times you are going to see that stock move down. Even if it kind of jumps a little bit selling comes into the stock and then it trades lower. This is not that. This is a really nice solid squeeze here and we are just waiting for something to push this higher.
This is really what I am looking at, a long flat triangle. You have got a distance from we will say, 230.00 up to, we will call it, 280.00 (I will round down), that is a $50.00 range from bottom to top. And so once this stock breaks out, say above 280.00, just tack 50.00 on the top of that and you have got 330.00, which would really be the price target on this.
That is really how I would measure the move on this stock. Certainly, obviously not over night, but that is how I would take the pattern that it is in right now and do a projection on where I think this stock can go. As long, of course, as the fundamentals back it up. But the way this company is growing, it got really solid revenue growth and earnings per share growth, I am looking for another 40 or 50 points in this stock, we will say, over the next year.
Free Chart