ULTA closes higher for the 3rd day in a row
Ulta Beauty Inc. (ULTA) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, ULTA finished Wednesday at 239.94 gaining $2.62 (1.1%), significantly outperforming the Nasdaq 100 (-1.67%). Trading up to $5.47 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on September 4th, ULTA actually lost -3.02% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (ULTA as at Sep 16, 2020):
Wednesday's trading range has been $10.75 (4.5%), that's above the last trading month's daily average range of $8.40. 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 slightly higher than usual for ULTA.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. Additionally, two candlestick patterns are matching today's price action, the Bullish High-Wave Candle and the Bullish Spinning Top which are both known as bullish patterns.
Unable to break through the key technical resistance level at 242.90 (R1), the share closed below it after spiking up to 244.00 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
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 "Bullish High-Wave Candle" stand out. Its common bullish interpretation has been confirmed for Ulta Beauty. Out of 20 times, ULTA closed higher 60.00% 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 60.00% with an average market move of 1.67%.