ULTA took a massive hit after their recent earnings report disappointed in a big way.  Last week, I wrote that I was concerned that UTLA was trying to tell us something about the consumer – that they are slowing their spending.  However, other indicators suggests that the consumer is still strong.  As of now, we have no idea which way we’re headed.  In the meantime, I’m sticking by my assertion that ULTA is oversold.  I started a position early last week and added to it on Friday.

Take a look at ULTA’s weekly chart below.  RSI 14 is at 32 (trending up out of oversold range) and Stoch (5,3,3) is still very much in oversold territory.  However, with the Stochastic bullish cross and the possitive action on Friday, I’m optimistic that ULTA will push through EMA200 this week.

ULTA Weekly

Have a great week and set those stops.  The market is very emotional right now.