Swing Trade Idea (ULTA) – November 2, 2023
Our bullish trade for Thursday, November 2nd is
Ulta Beauty Inc. (ULTA). ULTA is part of the Consumer Discretionary Sector, which has performed at 2.39% over the last week, with ULTA performing at -0.67% over the same period.
ULTA found support at $370 and made a double bottom, as its relevant sector is bouncing higher. With the overall market finding support and trading higher, together with its sector, we believe that ULTA will continue to respect this area of support, which is a multi-month area of support, over the duration of this trade.
As a close, if ULTA were to trade below $370 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves above $21.40.