ULTA surges, gaining $8.42 (3.15%) within a single day on high volume
Ulta Beauty Inc. (ULTA) Technical Analysis Report for Jan 13, 2020 | by Techniquant Editorial Team
Moving higher for the 6th day in a row, ULTA finished Monday at 275.70 surging $8.42 (3.15%) on high volume, strongly outperforming the Nasdaq 100 (1.16%). This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on December 6, 2019, ULTA actually lost -3.65% on the following trading day. Today's close at 275.70 marks the highest recorded closing price since August 29, 2019.
Daily Candlestick Chart (ULTA as at Jan 13, 2020):
Monday's trading range has been $10.40 (3.86%), that's far above the last trading month's daily average range of $5.48. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for ULTA.
One bullish candlestick pattern matches today's price action, the White Candle.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day while could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 254.88.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Up Move" stand out. Its common bullish interpretation has been confirmed for Ulta Beauty. Out of 198 times, ULTA closed higher 52.53% 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 61.62% with an average market move of 1.12%.