The technical picture of the Under Armour Inc Closs C common stock (NYSE: UA) on our 4-hour chart shows that the in the end of January, the share price made its way above a short-term downside resistance line taken from the high of November 19th. The stock started forming higher lows, as it is now trading above a short-term tentative upside support line drawn from the low of January 28th. Although UA is showing signs that a further move higher in the near-term could be possible, we would first prefer to wait for a push above the current highest point of February, which is at the 17-dollar mark.
If, eventually, a break above the 17.00 barrier happens, this move would confirm a forthcoming higher high and the next possible target might be at 17.77, marked by the high of January 6th. Around there the stock may stall for a bit, as the upmove could get halted by the 200-day EMA. That said, if the buyers see it as a temporary obstacle on the way higher, they might overcome it and then aim for the 18.65 level, which is the highest point of January.
The RSI is currently pointing slightly to the downside, however, remains comfortably above 50. The MACD remains flat, but sits slightly above the signal line, not to mention that the indicator continues to run above zero. Overall, the oscillators show positive price momentum, supporting the scenario discussed above.
Alternatively, if the share price breaks the aforementioned upside line and then falls below the 16.06 hurdle, marked by Friday’s low, that may open the door to some lower areas and some buyers could get spooked. UA might then travel to the lowest point of January, at 14.96, a break of which would confirm a forthcoming lower low, potentially setting the stage for a move to the 14.32 level, marked by the lowest point of December 2020.
Disclaimer:
The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. The Group of Companies of JFD, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD prohibits the duplication or publication without explicit approval.
There are risks involved with trading of cash equities. Past performance is not indicative of future results. You should consider whether you can tolerate such losses before trading. Please read the full Risk Disclosure.
Copyright 2021 JFD Group Ltd.