Check the chart on Ulta Beauty (ULTA). It’s be-you-tih-ful. (July 08, 2019)ULTA QQQ AMZN ULTA
I want to go over Ulta ( NASDAQ: ULTA ) here. This is actually one of the more recent additions to our Growth Stock List and it’s the only stock that’s not profitable, which it kind of ticks me off, it’s a little bit embarrassing. We put this on the list a while ago after it was reported that Amazon ( NASDAQ: AMZN ) is going to go into the online beauty business; it’s nice to be beautiful online. The stock sells off but it doesn’t really move the needle. The stock stabilized a bit and didn’t really go in either direction.
I walked everybody through this in our Strategy Session video just a little while ago. It took me quite a while because what I was describing was the genesis of this pattern here; I think we are going to get a move up. So I walked everybody through that detail. I am not going to do that in this video it would just take too long. But suffice it to say this, this had been making lower lows; the stock was kind of trapped right around this level so it’s kind of forming a little triangle.
We don’t really look for stocks that do a triangle like this and then just explode to the upside. It would be nice if that happened but it really doesn’t happen too often. Instead, you see a stock that forms a triangle and then at some point on the right side of the triangle you want to see some kind of a box, this type thing, even another triangle on the right side moving up this way. We need to say something that tells us that this little move down is not the end of the stock it is just the beginning of the next base and so that is really what I am seeing right now.
I think you could buy this stock right here, frankly. It would be nice to get a little closer to the 50-day moving average but if you are buying the stock here then I think you are getting in before this. The company reports earnings but it’s not until the end of August so this has quite a while just to trade along with the QQQs ( NASDAQ: QQQ ), along with the market. As long as the QQQs ( NASDAQ: QQQ ) stay strong, as long as Amazon ( NASDAQ: AMZN ) stays strong, actually, I think that Ulta ( NASDAQ: ULTA ) is going to do just fine. So definitely check that out.