Cosmetics producer and retailer Ulta Beauty (ULTA) has consistently been in the Green Favored Zone of the SIA S&P 500 Index Report since April, returning a gain of 14.7% over that time. Yesterday, it finished in 59 position, up 5 spots on the day and up 16 places in the last month.
Back in June, Ulta Beauty (ULTA) shares reached a critical technical turning point where a breakdown attempt was rejected, a downswing was contained and the shares gapped upward, all on high volume. Since then, ULTA has been under renewed accumulation, breaking out of a $337.50 to $425.00 range, establishing a higher range between $375.00 and $450.00, and then breaking out to a new high.
With yesterday’s breakout signaling the start of a new upleg, next potential resistance may appear near the $500.00 round number, followed by $512.50 and $525.00 which are based on measured moves. Initial support appears near $425.00.
Ulta Beauty (ULTA) spent a year, from September 2021 to September 2022, trending sideways and consolidating a previous rally. In recent months, particularly since an April Bear Trap bottom, accumulation in ULTA has been increasing, culminating in the shares breaking through the top of their previous range to new highs, and completing several bullish Double Top breakouts to signal the start of a new advance.
Initial upside resistance may appear near the $500.00 round number, followed by $531.25 and $552.70 which are based on vertical and horizontal counts, respectively. Initial support appears near $418.85 based on a 3-box reversal.
With a perfect SMAX score of 10, ULTA is exhibiting strength across the asset classes.
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