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Fan Yang

Under Armour breaks above consolidation

Under Armour has been consolidating since mid-June after a slide from about 48.00 to about 35.50 as we can see in the 4H chart. 

UA 4H Chart 7/1

(click to enlarge)

Limit the bullish outlook: The 4H chart shows that the market pushed UA above a consolidation range (roughly between 35.50 and 39.00). Note the gap, reflective of strong buying. Still, when considering that the overall trend has been bearish and then sideways since Sept. 2015, the bullish outlook should be tempered. 

Anticipating resistance and a pullback: The area between roughly 42 and 43 involves many previous support and resistance pivots. We should anticipate resistance here. Then, I want to see if price pushes back into the currently broken consolidation. If price can push below 37.50, we will likely be back in a bearish scenario with 32.00 (near 2016 low) in sight. However, if price can hold above 39.00 or even 38.00, we will have to consider a bullish continuation towards 48.00 and maybe 50.00.

Here's an article about one of UA's projects that could be positive for its valuation or projection: 
Wearable Tech: The Next Big Thing for Under Armour Inc (NYSE:UA) Stock

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