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Fan Yang

Under Armour (UA) Trading a 2017 Range Support

2017 has been a rough year so far for s athletics apparel retailers like Under Armour (UA), Nike (NKE), and Lululemon (LULU). However, UA might find some buyers at its 2017 range support.

UA 4H Chart

(click to enlarge)

Range:
- On the daily chart we can see that price fell sharply at the end of January and then settled into a range roughly between 17 and 20.
- It has been stuck in this range since, but after failing to push above 20.00 in April and then again in May, price fell back towards 17.
- UA found some strong buying at the end of the week as it approached 17.00. This shows the market's respect for this support.
Upside:
- In the upcoming weeks, we might see price settle around 17.00 and then rebound back towards 20.00.
- We should also anticipate some reaction in the middle of the range, around 18.50.
Bearish Scenario:
- We can say that price ranging between 17 and 20 is essentially a 15-18% range. 
- A break below 17 could open up another 15-18% dip, which would bring price close to 14 and  a little lower.
- This bearish scenario is going to be more likely, if we get a rebound from 17 that retreats when it probed the middle of the range around 18.50. If this happens, I would be careful not to anticipate a bounce off 17, but instead anticipate the break and bearish continuation.


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