Here’s how our trade on Ulta Beauty ($ULTA) worked out. (October 01, 2019)

by DAN ULTA 
I want to come back to Ulta ( NASDAQ: ULTA ) because yesterday, if you recall, I said, “It looks to me like Ulta ( NASDAQ: ULTA ) is going to start breaking out. If it opens up above 250.00 you definitely want to be getting into this stock.” It is starting to trade up above the top of this trading range on August 30th after the stock gapped down. So it’s starting to breakthrough the bottom of this big gap. And then sure enough, boom, it’s up today and at one point it was up well over $15.00, so this turned out to be a really good trade.

Here’s the thing, how high is this going to go? We don’t know how high this stock is going to go and so I am decidedly not going to choose, I am not going to tell you. This is really the top of the gap. This is the box that this thing can ultimately fill.

What I would look for, frankly, is about halfway. If you are long this stock I would look for about $280.00. If Ulta ( NASDAQ: ULTA ) comes up and fills half of this gap I would either be selling into it, maybe take half of your position off the table or at least be raising my stop. I think it’s probably realistic to expect the stock to completely run back up to the top of the gap. But I don’t think it’s unrealistic to look for, say, half. That’s what I would be looking for.

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