Ulta Close to Resistance

Published on Friday, 27 January 2012 05:52 Written by Danny Miller

New York, January 27th (TradersHuddle.com) - Shares of Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) are trading very close to calculated resistance at $77.83 with the current price action closing at just $76.69 placing the stock near levels that make it difficult to buy.

Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ:ULTA) is a beauty retailer that sells cosmetics, fragrances, skin and hair care products, and accessories. The Company also offers hair salon services, manicures, pedicures, massages, and other beauty & spa treatments.

Ulta's current stock range is defined by current calculated support defined at $63.44 and by the resistance level at $77.83, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for Ulta, as the stock is well above support, however, as the stock pulls back towards $63.44 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $77.83 then traders will get an opportunity to enter Ulta stock by establishing a position as the stock moves to a higher range.