Ultra Beauty, Looking Definitely Ugly

Ultra Beauty, Looking Definitely Ugly
December 10 16:36 2018

Ulta Beauty, Inc.operates as a beauty retailer in the United States. The company’s stores offercosmetics, fragrances, haircare and skincare products, bath and body products,and salon styling tools; salon services, including hair, skin, and browservices; and others, including nail products and accessories. It providesprivate label products, such as the Ulta Beauty Collection branded cosmetics,skincare, and bath products, as well as Ulta Beauty branded products Clinique, Revlonand Maybelline. 

But the big buzz as of late was billionaire, Kylie Jenner,

announced that she was partnering with Ultra within their stores.  Previously available only online, Kylie Jenner confirmed via Twitter on 8/30.

Ulta Beauty (NASDAQ:ULTA)took a hit Friday, falling as much as 10%+ after announcing their quarterlyearnings.  Earnings were $2.18 per share, beating estimates by $0.02, on $1.56 billion in revenue, matching estimates.  For the current quarter, Ulta says it expects$3.50-$3.55 and $2.085 billion-$2.103 billion in net sales which is belowcurrent analyst projections for $3.60 earnings per share and $2.109 billion in sales.

Just like Big Lots, 

Big Lots Looking Like A Small Parcel

The company said it expected fourth-quarter sales to be between $2.09 billion and $2.10 billion, below analysts expectations of $2.11 billion.

So is there still more downside risk to Ultra, lets go to the charts to find out?

On the monthly chart, there is negative divergence. 

On the weekly chart, there is weekly demand at $228.

Although there is still downside risk, the profit potential isn’t enough.  Thus, there is no trade set-up at this time.

This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.

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I'm a retail investor like most of you and learning everyday, but I have been educated and trained to identified the Smart Money on the charts to pick up whatever crumbs they leave behind.

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