Send me real-time posts from this site at my email
Fan Yang

Under Armour Inc. (UAA) - Bulls Take Charge after Earnings Beat Expectations

Under Armour Inc. $UAA has been choppy, but appears to be confirming a price bottom as price rose sharply during the 2/12 session after the release of Q4 earnings, which beat expectations.

Here's a report from CNBC:

Under Armour earned 9 cents per share on an adjusted basis during the fourth quarter, topping analyst expectations of 4 cents per share, according to average estimates compiled by Refinitiv.

Sales rose 1.5 percent to $1.39 billion, ahead of expectations for $1.38 billion.

Under Armour said U.S. sales fell 6 percent from the previous year to $965 million during the fourth quarter, while international sales climbed 28 percent, after adjusting for fluctuations in foreign exchange rates, to $395 million and now account for 28 percent of its total revenue.

It said apparel sales were up 2 percent, fueled by its training business. Footwear sales were down 4 percent, as Under Armour said it sold fewer shoes in discount stores during the holiday period. Accessories sales declined 2 percent.

The retailer didn't make any changes to its outlook for 2019, which it originally laid out in December.

From CNBC

Let's take a look at the price action:

UAA Daily Chart

(click to enlarge)

Choppy and Bullish:
- The daily chart shows us that price action has been choppy but mostly bullish since late 2017 when the market support UAA at $11.50 per share.
- It has since made a high around $24.70, which remains the key resistance against a truly bullish development.
- Otherwise, UAA has been simply bullish within consolidation.

Bullish Signs:
- The fact that price held above $16.50 back in December was a sign that bulls are resilient in this market. After all, this suggests the market respected a rising trendline.
- Then price came back up towards $20, and stalled around here for a bit.
- Then, the 2/12 session bullish engulfing candle signaled that bulls are indeed taking over. 
- When we look at the weekly chart, we can see that the weekly RSI has pushed above 70, and has since held above 40. This is a sign that the bullish momentum from 2017-2018 is still in play.
- I think there could be upside towards the $28-$30 area in the medium-term (next couple of months). 
- At this point, I would love to pick UAA up around $21.50 and $18.50. 
- Note that price is also challenged by a bearish trendline.
- A break above $23 would likely clear this trendline, and open up the bullish scenario.

UAA Weekly Chart

(click to enlarge)

Welcome! Is it your First time here?

What are you looking for? Select your points of interest to improve your first-time experience:

Apply & Continue