Ulta Beauty (NASDAQ: ULTA) is opening an ultimate entry into its stock after reporting an arguably weak quarter. Takeaways for investors include the high bar, a slim miss, growth, and recent stock price action, including a significant breakout and rally. Together, they point to a market reset, not a reversal, suggesting a rebound is likely, and the potential for gains is great.
A look at the monthly price action reveals an extreme peak and convergence in the moving-average convergence-divergence (MACD), reflecting a strengthening market, stronger than it's ever been, and one likely to retest its current highs as a minimum target. The question is how low the market will go and what will drive the rebound.
