Beauty Products Leader Forming Strong Bullish Flag Setup
Ulta Beauty (ULTA) shares are coiled in a tight range nearing 2 months since gapping up big on strong earnings results and have consolidated those gains well as the 55-day MA catches up to price action. ULTA closed with an inside day candle Monday and looks ready to reclaim its monthly value area above 478 for a potential rotation back up to test the 495 top of value and likely target that 500-round number. ULTA also is seeing a golden cross where the 50-day MA crosses above the 200-day MA and points to longer term trend shift higher after the past year was mostly corrective after the name outperformed the market in 2022 with positive returns. Last week on 1/18 ULTA saw a buy write of 200 September $550 calls selling for $20.35, willing to be called away at about 20% higher than current prices.