Under Armour (NYSE: UAA) traded higher, breaking above the key resistance zone of 21.80, which had been acting as a temporary ceiling since September 16th. In our view, the break above 21.80 signaled a short-term bullish reversal, which means more near-term advances.
We believe that the break above 21.80 may have opened the way towards the peak of September 10th, a t around 23.50, which if fails to hold, may encourage investors to push towards the 24.35 territory, above which investors repeatedly failed to climb back between August 24th and 30th.
Our short-term oscillators detect upside speed, which adds more credence to the view that the break above 21.80 may have opened the path towards higher areas. The RSI turned up again and is now approaching its 70 line, while the MACD lies above both its zero and trigger lines.
In order to start examining the bearish case again, we would like to see a clear dip below 19.85. This will confirm a forthcoming lower low on both the 4-hour and daily charts, and may see scope for declines towards the low of July 19th, at 18.50. If that area is not able to halt the slide either, then the next territory to consider as a support may be at around17.30, marked by the low of January 29th.
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