Why Ulta Beauty (ULTA) Could Be Ready For A Big Drop | The Mesh Report

Why Ulta Beauty (ULTA) Could Be Ready For A Big Drop

Christian Tharp, CMT May 17, 2023 Comments Off on Why Ulta Beauty (ULTA) Could Be Ready For A Big Drop

One of our main goals with these video walkthroughs, and indeed, our strategy of trading is to demystify the world of options trading. You’ve probably heard it all. Options trading is impossible to be profitable in, its not a viable means to make money, so on and so forth. However, what if the real reason you haven’t seen a meaningful shift in your options trading ability is much simpler than that?

What if it all comes down to the education, or lack thereof, that is the real bottleneck? Well, we hope to have a solutions to all your hopeful traders out there. Today, we have yet another example of how we plan to declutter your trading strategy by finding clean and obvious trade setups, so let’s get into it.

Ulta Beauty (ULTA) is one of those simple examples, which has set up a clear level of support around the whole psych number of 500 as you can in the video below. However, what you will also have noticed is this level of support has been broken, implying lower prices could be the the most plausible outcome at this point.

If we are looking at the yearly chart, we don’t see another level of support until 480, a significant drop from current levels. The higher probability trade here would to likely take puts, while being mindful that a bounce, however big or small, could come into play at that 480 level. My advice? If you were to take a short position, scale into your position with a stop near 505, as you could get a retest of that 500 level if the market shows us strength. Be sure to check out the full video below for any additional thoughts on this setup!

Read More and Watch the Video at Wealthpop

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