ULTA rises to highest close ever
Ulta Beauty Inc. (ULTA) Technical Analysis Report for Apr 16, 2019 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, ULTA finished Tuesday at 355.08 edging higher $1.14 (0.32%), slightly underperforming the Nasdaq 100 (0.34%). Today's close at 355.08 marks the highest recorded closing price ever. Trading up to $5.16 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (ULTA as at Apr 16, 2019):
Tuesday's trading range has been $7.18 (2.02%), that's slightly above the last trading month's daily average range of $6.44. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently significantly lower than usual for ULTA.
Three candlestick patterns are matching today's price action, the Hanging Man and the Northern Doji which are both known as bearish patterns and one neutral pattern, the Doji. The last time a Hanging Man showed up on March 12th, ULTA actually gained 1.29% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Ulta Beauty. Out of 97 times, ULTA closed higher 55.67% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 70.10% with an average market move of 2.67%.