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Ulta Salon Does An About-Face After Q1 Beat

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Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Ulta Salon, Cosmetics & Fragrance, Inc. (NASDAQ: ULTA) shares were trading lower by $1.47 at $154.80 in Friday's session. The issue is now in the red after posting a new all-time high off the open, surpassing the former high ($159.97) by reaching $159.85 before reversing course.

The catalyst for the rally was a better-than-expected Q1 results for EPS ($1.04 vs. $0.93 estimates) and sales ($868.1 million vs. $846 million estimates). Comps were up 11.4 percent.

The issue, which had a nice $6 rally over the last three days, attracted a boat load of sellers who bought the issue in anticipation of a strong report.

So far, it has declined to $154 and has been struggling to maintain the $155 level.

If the issue breaches its intraday low, there may additional support at Thursday's low ($152.80).

Posted-In: Pre-market outlookTechnicals Intraday Update Trading Ideas

 

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