Watching $ELF for another pretty candle – September 21, 2023
This is Scott with your Chart of the Day. I want to take a look at e.l.f. Beauty ( NYSE: ELF ).
Now, e.l.f. ( NYSE: ELF ) looks pretty good, considering the state of the market right now. Now, don’t get me wrong this is not a beautiful chart. It is a chart that needs help, maybe some blush or eye shadow or whatever. I don’t know makeup, that’s my wife’s specialty, but not me.
It does look like it has some potential because, after 1, 2, 3, 4, 5, 6, 7, 8, 9 red days in a row, it finally bounced today and did it on higher than-average volume. So if the market bounces tomorrow we could see a little follow-through to the upside, and maybe a short-term trade into the cluster of moving averages.
I wouldn’t expect too much out of this just because there are so many built-in sellers in this chart right now. Just on the amount of red, I don’t think you want to hold this for a long-term thing. I think you just want to swing to the upside and ideally get a few points out of it, and then get out of the way because you don’t know what’s going to happen.
Now, this is already an idea that I have shared with our members at Stock Market Mentor. But what I am looking for is a move above today’s intraday high and a close above today’s intraday high, with a stop loss under today’s intraday low, right around that $100.00 range.
So you’re buying it because you think it is going to go up here and close up there, or at least get up in here for a short period of time, enough where you can take some profits. And then get out of the way and ideally close the trade out before it tests the lows again, and potentially breaks down here and breaks under that $100.00 level, which is pretty key here on this chart.
You can see how that $100.00 level has been holding since back here in May. I think it at a pretty clear level of support, ideally it goes up here. But if you do want to hold some, just to see, you don’t want it to close under that $100.00 range.
That is just a quick idea here on e.l.f. ( NYSE: ELF ). Let’s be honest, there are not many good-looking charts in this market. And even this one still needs some work in front of the mirror.
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