Under armour is running North
|Under Armour (NYSE: UAA) has been in a rally mode since last Thursday, when it hit support near the crossroads of the 14.00 level and the upside support line drawn from the low of September 22nd. That said, yesterday, the stock hit resistance near the 16.80 barrier and then, it retreated somewhat. As long as it is trading above the pre-mentioned upside line, we would see a positive picture, but we cannot rule out some further declines, before market participants jump back into the action.
A dip back below the 16.20 level, marked by the inside swing peak of November 9th, would confirm the case for a deeper retreat, perhaps opening the way towards the 15.20 level, marked by Monday’s low. Investors may decide to buy again near that zone and thereby push the price back up to the 16.80 hurdle. A break above that obstacle would confirm a forthcoming higher high and may set the stage for extensions towards the 17.50 area, marked by the highs of February 11th and 12th, or towards the 17.90 zone, which is the low of December 3rd, 2019.
Shifting attention to our short-term oscillators, we see that the RSI has topped within its above-70 zone, and just touched its toe below 70, while the MACD, although above both its zero and trigger lines, shows signs of topping as well. Both indicators detect slowing upside speed and corroborate our view for some further retreat before the next positive leg.
In order to abandon the bullish case, we would like to see a dip below 14.00. The price would already be below the aforementioned upside line, while the move below 14.00 would confirm a forthcoming lower low. We may then see declines towards the lows of October 28th and 29th, at around 13.15, the break of which may extend the slide towards the low of October 15th, at 12.30.
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