In the dynamic world of beauty and cosmetics, e.l.f. Beauty Inc (NYSE : ELF ) has been making waves with its innovative products and customer-centric approach. The company has been riding a strong wave of bullish sentiment, driven by its ability to capture the hearts of consumers and deliver impressive financial results. In this article, we will explore the promising outlook for e.l.f. Beauty Inc (ELF), delving into the Elliott Wave pattern unfolding within its weekly cycle.
ELF has surged 90% this year, building on an impressive 1400% rally from its all-time low. The stock’s strong impulsive rally, starting on 2/26/2019, suggests it is trading within an extended third wave known as a Nest. This powerful wave tends to exceed target expectations, with price extending within its daily cycle.
Upon analyzing the weekly chart of ELF, it becomes evident that the stock is currently transitioning into a volatile phase within its upward trend. It is likely approaching the completion of wave ((5)) of III, which will be followed by a corrective pullback in wave IV. Subsequently, we can anticipate further upside in wave V of (III). During this phase, the stock typically forms a series of 4th and 5th waves, contributing to the development of a robust nest pattern.
ELF Weekly Elliott Wave Chart
ELF daily cycle is more likely to remain supported above $83.8 and and the stock is expected to see further upside toward technical targets at $124 – $140. As the bullish sentiment continues to unfold, investors and traders are advised to remain vigilant for potential corrective pullbacks, which can serve as attractive buying opportunities within the mid-term range. With the overall positive market sentiment intact, it is important to stay proactive and capitalize on these price retracements to further benefit from the ongoing upward momentum.
However, it’s worth noting that as the strongest wave of the bullish trend enters its final phase, we may expect increased price choppiness and potential volatility. This phase of the market cycle often presents unique challenges and requires careful analysis and risk management. Traders should be prepared for potential fluctuations and adjust their strategies accordingly to navigate the evolving market conditions successfully.
Source: https://elliottwave-forecast.com/stock-market/elf-beauty-strong-wave-bullish-sentiment/