e.l.f. Beauty Is Sitting Pretty for Upside
Shares of the beauty firm e.l.f. Beauty (ELF) rallied towards their March highs Tuesday after the sell-side firm Canaccord Genuity said that the company's growth story was still strong. I last wrote about ELF on May 23 and was looking for more price action.
Let's check on the charts and indicators again.
In the daily bar chart of ELF, below, I can see that the shares are trading above the rising 50-day moving average line and above the rising 200-day moving average line.
The On-Balance-Volume (OBV) line declined to a low in late May and has reversed to the upside. The Moving Average Convergence Divergence (MACD) oscillator is back above the zero line and pointed higher.
In the weekly Japanese candlestick chart of ELF, below, I can see a longer-term uptrend in progress. Prices trade above the rising 40-week moving average line.
The trading volume has been increasing the past two years and that is a very positive development that tells me that investor interest in ELF has grown. The weekly OBV line shows a two year rise followed by a sideways trend. The MACD oscillator is above the zero line and in a position to turn higher again for a fresh outright buy signal.
In this daily Point and Figure chart of ELF, below, I can see an upside price target in the $257 area.
In this weekly Point and Figure chart of ELF, below, I can see a price target in the $297 area. Let's call it $300.
Bottom-line strategy: Traders could go long ELF at current levels risking to $194 or on strength above $224. The $257 area is my first price target for now.
Employees of TheStreet are prohibited from trading individual securities.