Market update on ULTA 12.4.12.
Technical Analysis of ULTA
Positives:
Currently this stock is above the 21, 50, 100 and 200 day moving averages.
After reporting earnings the stock jumped 7.65% on massive volume.
Negatives:
The duration of the bull market.
Summary:
On 11.3012 ULTA reported another quarter of double-digit growth. The stock vaulted 7.65% on massive volume. Many investment firms raised price targets on the earnings report. Generally I prefer expensive stocks like ULTA. The risk reward odds are substantially better. There are three cautious characteristics to the stock. First, this leading stock originally broke out on 9.4.09 at $15. Therefore the market cap has grown by about 5.6 x. Second, prior to the earnings report the stock pattern was wide and loose. And third the bull market is long in the tooth. With that being said if the market stays together this stock can easily outperform on the short-term. As always use good money management and protect capital with stops.
