Ulta Beauty (ULTA) shares rose nearly 14% in extended trading on Wednesday after a regulatory filing showed that Warren Buffett’s Berkshire Hathaway (BRK.A, BRK.B) acquired a stake in the cosmetics retailer in the second quarter.

According to a 13-F filing made available after the close of trading Wednesday, the Omaha-based conglomerate bought 690,106 shares of Ulta Beauty, with the holding valued at approximately $266.3 million as of June 30.

Berkshire’s investment is welcome news for shareholders of the specialty retailer, whose stock price has fallen 42% since hitting a record high in March through Wednesday’s close. In May, the company cut its full-year 2024 forecast due to slowing demand.

Ulta Beauty shares rose 14% to $375.50 in after-hours trading.

Below, we take a closer look at the specs in Ulta Beauty’s chart and point out key price points to look out for.

Falling wedge in focus

Since hitting a record high in mid-March, Ulta Beauty shares have been trading in a falling wedge, a chart formation that is trending downward but indicates a reversal to the upside.

Prior to Wednesday’s post-market move higher, buyers had defended the pattern’s lower trendline, enough to push the Relative Strength Index (RSI) out of oversold territory.

Levels to watch during the Berkshire-inspired jump

With Ulta Beauty’s Berkshire-inspired jump expected Thursday, investors should keep an eye on four key price levels.

The first is around $373, an area on the chart where the price is facing resistance consisting of the October and May swing lows, the upper trendline of the falling wedge, and the downsloping 50-day moving average (MA).

A close above this level could take shares to $406, where they could potentially face selling pressure from a horizontal line connecting the June 2023 swing low to several highs and lows from August last year to July this year.

Further buying could lead to a rally into the $440 region, which is currently just below the closely watched 200-day MA. This area would likely face resistance near a multi-month trend line connecting the May 26, 2023 gap high, the August 2023 swing low, and the April 3, 2024 gap low.

Finally, a longer-term uptrend could test higher resistance at $487, where sellers could decide to lock in profits around the July 2023 swing high, which also roughly coincides with a December-January consolidation phase that followed a gap in equities.

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At the time of writing, the author does not own any of the securities mentioned above.