$ULTA Doesn’t care about CPI – February 13, 2024
This is Scott at StockMarketMentor.com with your Chart of the Day. I want to take a look at Ulta Beauty ( NASDAQ: ULTA ).
Ulta Beauty ( NASDAQ: ULTA ) is seemingly one of those sectors, and, evidently, one of those stocks that is unaffected by CPI. We had the CPI report come out higher than expectations. Ulta Beauty ( NASDAQ: ULTA ) opened lower, like most of the market.
But unlike most of the market, it did not make a new low on the day. It bounced off of that 8-day exponential period moving average and closed near the highs. It even did it on pretty decent volume, slightly higher than the average volume on the day.
And it turns out it doesn’t really matter what inflation is, people are still buying their makeup. This is, definitely, a sector and a stock that I want to keep an eye on. Maybe keep an eye on it along with e.l.f Beauty ( NYSE: ELF ), which did okay today but not nearly as well as ULTA ( NASDAQ: ULTA ).
This stock looks to be marching towards its previous high back here at around. 550.00-556.00 region. I would look for that as a short-term swing target on the stock. Now, I will say it is a bit extended above that 8-day exponential period moving average.
At this point, I’d probably wait for a bit of a pullback to the 8-day or even better, a green day bounce off that 21-day, if you can get it. But then, I’d look for that 550.00 to 556.00 target as a swing zone to potentially take some partial profits. Or even look for a strong break, through that level, coming on higher than average volume into blue sky territory.
If I zoom out here, you can see this stock has actually done really well on earnings. They do have earnings coming up in March, and so I think we may get a bit of a run into earnings, at least to that 550.00 to 556.00 zone. This is what I’m looking for here on Ulta Beauty ( NASDAQ: ULTA ).
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