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Fan Yang

I Liked Today's (4/18) Price Action in Under Armour (UAA)

Under Armour (UAA) has been consolidating after a bullish breakout attempt. First, let's take a look at the weekly chart.

UAA Weekly Chart

(click to enlarge)

Bullish Reversal:
- As we can see, price action has been bearish since September 2015 when UAA peaked.
- After a tremendous multi-year slide, UAA found support around $11.50 a share in October 2018. 
- Since then, we have seen price make higher highs and higher lows, which is the most apparent sign of a bullish trend.
- Furthermore, the RSI has pushed above 70 in 2018, and has since held above 40. This reflects maintenance of the bullish momentum.
- In the recent weeks, price has cracked a falling trendline, and has been consolidating around the $21-$22 area
- Now let's take a look at the daily chart.

UAA Daily Chart

(click to enlarge)

Bulls Taking Over:
- Price action since December has taken UAA above the cluster of 200-, 100-, and 50-day simple moving averages (SMAs).
- The more price holds above this cluster and uses it as support, the more bullish the chart looks.
- Furthermore, the RSI here tagged 70 and has held above 40 in 2019 - another bullish sign.
- Finally, the price action during the 4/18 session showed a long tail to the bottom. This suggests bulls are in charge.
- This also signals a subsequent push to the $23 resistance area again. And because there are prevailing bullish signs, we can anticipate a push towards the next resistance pivots around $24-$25.
- I think in the short-term to medium-term (In the coming weeks or a couple of months), we can see UAA push towards the 200-week SMA around $27.50. 
- For now, I would limit the bullish outlook to this area.
- Once we start seeing price move up, if price pulls back and finds support around $22, we can be more confident of the bullish outlook.

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