Under Armour (UA Stock) gaps above the 24.70 barrier

Under Armour (NYSE: UAA) opened with a positive gap yesterday, to trade above the 24.70 barrier, marked by the highs of last Thursday and Friday. That said, the advance was stopped near the 26.45 level, and then, the stock retreated somewhat. Overall, Under Armour trades above the upside support line drawn from the low of October 28^th, and thus, we would consider the near-term outlook to be positive.

The current retreat may continue for a while more, even back below the 24.70 barrier. However, as long as the price stays above the aforementioned upside line, we would see decent chances for market participants to re-enter the action, perhaps from hear the 23.10 support, marked by Tuesday’s low. We may then see a recovery back near 26.45, where a decisive break may see scope for extensions towards the highs of July 24^th and 25^th, 2019, at around 27.75.

Looking at our short-term oscillators, we see that the RSI fell back below its 70 line, while the MACD, although above both its zero and trigger lines, shows signs that it could top as well. Both indicators detect decelerating upside speed and support the notion for some further retreat before the next leg north.

In order to start examining the case of a bearish reversal, we would like to see a dip below 20.70. This would not only take the stock below the pre-discussed upside line, but it would also confirm a forthcoming lower low on the daily chart. Under Armour could then fall towards the 18.60 zone, the break of which could pave the way towards the 18.20 level or the 17.25 barrier, defined as supports by the inside swing low of January 28^th, and the low of the next day, respectively.