Market News Video

RSI Alert: Ulta Beauty (ULTA) Now Oversold

By Market News Video Staff, Thursday, October 12, 12:01 PM ET

Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

In trading on Thursday, shares of Ulta Beauty Inc (NASDAQ:ULTA) entered into oversold territory, hitting an RSI reading of 26.6, after changing hands as low as $189.50 per share. By comparison, the current RSI reading of the S&P 500 ETF (SPY) is 80.2. A bullish investor could look at ULTA's 26.6 RSI reading today as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side. The chart below shows the one year performance of ULTA shares:

Ulta Beauty Inc 1 Year Performance Chart

Looking at the chart above, ULTA's low point in its 52 week range is $189.50 per share, with $314.86 as the 52 week high point that compares with a last trade of $194.65. Find out what 9 other oversold stocks you need to know about

According to the ETF Finder at ETF Channel, ULTA makes up 1.77% of the iShares Edge MSCI Multifactor Consumer Discretionary ETF (AMEX:CNDF) which is trading relatively unchanged on the day Thursday.

See what other ETFs contain ULTA
See what other stocks are held by CNDF


Can your brain be trained to become a chart-predicting wizard? Click here to find out


This Article's Word Cloud:   CNDF   Edge   Finder   Oversold   Relative   Start   Thursday   ULTA   Warren   analysis   below   brain   bullish   changing   chart   entered   entry   falls   fearful   greedy   heavy   held   here   investor   know   level   look   makes   other   others   oversold   point   raquo   reading   selling   share   shares   sign   stock   stocks   technical   territory   that   trading   week   what   when   which   with   your
MNV
MNV
About Us - Advertise - Contact Us - Embedding Videos - Licensing Videos - Partners - mRSS / RSS Feed - Terms of Use - Privacy Policy - Video Widget

RSI Alert: Ulta Beauty (ULTA) Now Oversold | Market News Video | Copyright © 2008 - 2017, All Rights Reserved

Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.