Under Armour (NYSE: UAA) traded slightly higher yesterday, after rebounding from 19.85 last Thursday. However, the recovery was stopped by the 21.15 level, near the downside resistance line taken form the high of August 12th. As long as the stock continues to print lower lows and lower highs below that line, we would consider the path of least resistance to be to the downside.
However, in order to get confident over a trend continuation, we would like to see a dip below 19.85. Such a break will confirm a forthcoming lower low on the 4-hour chart and may initially pave the way towards the 18.50 zone, marked by the low of July 19th. If investors are not interested to buy at that price yet, then a break lower may see scope for extensions towards the 17.30 territory, which stopped the stock from drifting lower between January 11th and February 1st.
Taking a look at our short-term oscillators, we see that the RSI is flat slightly below 50, while the MACD, although negative, runs slightly above its trigger line, pointing up. Both indicators detect weak downside speed, adding credence to our choice of waiting for a dip below 19.85 before getting confident on stronger declines.
The move that may turn the outlook back to positive may be a break above 21.80. This will not only confirm the break above the aforementioned downside line, but also a forthcoming higher high. This could set the stage for advances towards the peak of September 10th, at 23.50, the break of which could carry extensions towards the 24.35 zone, which acted as a temporary ceiling between August 24th and 31st.
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.