The Under Armour stock (NYSE: UAA) has been trading in a recovery mode since Wednesday, when it hit support at 8.95. However, the stock remains decently below the downside resistance line taken from the high of November 19th, and thus, we would consider the near-term outlook to still be bearish.
Even if the recovery continues for a while more, we will consider it as a corrective bounce and we would see decent chances for another leg south. Perhaps that leg could be initiated from near the 11.55 barrier, marked by the high of May 17th, and we may see another test near 8.95. A break lower would confirm a forthcoming lower low and could aim for the 7.15 barrier, marked by the low of May 14th, or even the psychological figure of 5.00.
Shifting attention to our daily oscillators, we see that the RSI turned up and exited its below-30 territory, while the MACD, although negative, turned up and crossed above its trigger line. Both indicators detect slowing downside speed and add to the chances of some further recovery before the next leg south.
In order to start examining whether the outlook has brightened again, we would like to see a clear break above 15.75, a barrier that provided resistance between April 28th and May 4th. This will confirm the break above the downside line, and may initially target the 18.10 barrier, marked by the high of March 29th. Another break, above 18.10, could carry extensions towards the peak of February 10th.
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