Another $ULTA earnings, another drop in the stock.
Updated
ULTA is priced to perfection for its earnings announcement. Its stock has rebounded from the low 200s to the low 300s. Time series fibonacci analysis says we are likely to see an inflection point in the stock this week. This coincides with
ULTA's earnings.Let's see what happens to this stock tomorrow. I believe almost any positive upside surprise is already priced in, and the path of least resistance from these elevated price levels is down.
Zooming out to the monthly time frame, we also see the formation of a double top, deteriorating technicals (RSI, MACD, money flow).
I'll be watching the retail sales numbers that will be released soon closely for any indications as to which way this may go.
Trade active
After seeing the reaction in 
DG today and the retail sales numbers, I'm even more convinced by an upcoming negative earnings reaction after the bell today. I've added to my short position.Trade closed: stop reached
Close out this one, positive reaction on earnings.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.