The Ultimate Software Group has been working into a major consolidation over the last year. On Friday it pushed to a new intraday high, and today it is trying to push higher again.
This mid-cap stock has light volume around 250,000 shares on average, but at $220 / share, that removes a lot of traders. The SCTR, the Relative Strength and the price action all suggest this chart is trying to break out to the upside. It made its 2016 high in August, so I don't have an answer if that is its seasonal peak, but I would suggest keeping this one on your radar. A breakout here would target a move of 20% to $265.
Good trading,
Greg Schnell, CMT, MFTA
About the author:
Greg Schnell, CMT, MFTA is Chief Technical Analyst at Osprey Strategic specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA).
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