Sep. 19, 2007 (Investor's Business Daily delivered by Newstex) --

Blue Nile NILE is rebounding from a pullback to its 10-week moving average and closing in on its all-time high set in early August.

In fact, the stock's Relative Strength line on its weekly chart is already at new highs, ahead of price -- a bullish sign.

The Seattle-based firm is the largest online retailer of certified diamonds and fine jewelry.

Its earnings growth has ranged from 23% to 46% in the past four quarters. Sales ranged from 24% to 34%, well ahead of some traditional jewelry outfits such as Zales ZLC.

Ultimate Software Group ULTI may be forming a new base. Shares have ramped up in the past two sessions, after trading sideways a few weeks.

The stock also found support at its 10-week moving average for the second time since a June 15 breakout.

Ultimate makes software products for human resources tasks, payroll and recruitment.

The company has delivered triple-digit profit growth for four of the past five quarters. Analysts see full-year profit surging 87%.

After-tax margin was 24% in the latest quarter, sharply wider than in preceding periods.