Under Armour Rallies Above Downside Resistance Line

Under Armour Rallies Above Downside Resistance Line

Under Armour (NYSE:) opened with a positive gap on Monday, above the short-term downside resistance line drawn from the high of May 27. Yesterday, the stock opened with another positive gap, bigger this time, and managed to overcome the peak of June 25, at around 22.30. In our view, this has turned the short-term picture back to positive and thus, we would see decent chances for further advances.

We would expect the stock to challenge the 23.25 barrier soon, which provided resistance between May 12 and June 1, and if investors are willing to overcome it, then we may see them climbing towards the 24.74 zone, marked by the high of Apr. 30. Another break, above 24.74, could extend the recovery towards the peak of May 5, at around 26.45.

Shifting attention to our short-term oscillators, we see that the RSI moved above 70 and continues to point north, while the MACD lies above both its zero and trigger lines, pointing up as well. Both indicators detect strong upside speed and support the notion for further advances in this stock.

Now, in order to start examining whether investors have abandoned Under Armour, we would like to see a dip back below the aforementioned downside line, and even better, a break below the low of July 28, at around 19.85. This could pave the way towards the 18.50 level, marked by the low of July 19, the break of which could see scope for extensions towards the 17.13 barrier, marked by the low of Jan. 27.

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. 75.05% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure – https://www.jfdbrokers.com/en/legal/risk-disclosure .

Source link

Leave a comment

Send a Comment

Your email address will not be published.

Enter text shown below: