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Fan Yang

Under Armour (UAA) Remains in Bearish Mode

Under Armour $UAA is potentially in a bearish continuation mode. We recently noted that it was pulling back up after a bearish breakout. The pull up was pushing against the 200-day simple moving average (SMA) near $22. 

Under Armour Inc. (UAA) Pulls Up to Test the 200-day Moving Average

I noted: "I don't trust the current recovery. I am anticipating resistance in the $22-$22.50 area, which involves a support/resistance pivot area. " There were some initial signs to signal a bearish continuation, "...we also see that the RSI is right around 60 and could be turning lower. This dynamic (RSI holding under 60), could be a sign that bears are still in charge. Furthermore, we saw price action slow down as it approached $22, followed by a bearish engulfing candle. "

UAA Daily Chart


(click to enlarge)

Bears in Charge:
- As we can see price indeed turned down this past week, staying under the 200-day SMA.
- The RSI stayed under 60. 
- The chart suggests UAA still has downside towards the next support area around $16. We can see that this was a support/resistance pivot since late 2017. 
- I would not be surprised if price eventually comes down to challenge the 2017 lows in the $11.50-$12 area. But for now, I want to respect the $16 area first. I plan to enter a buy in at $16, with more dry powder waiting at $12. 
- At this point, I would start anticipating resistance at $20. This scenario would further support the bearish continuation scenario. 

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