UA dominated by bears dragging the market lower throughout the day
Under Armour Inc. Class C (UA) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
UA ended the week 6.8% higher at 7.38 after losing $0.32 (-4.16%) today on high volume, strongly underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (UA as at May 22, 2020):
Friday's trading range has been $0.38 (4.94%), that's below the last trading month's daily average range of $0.54. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for UA.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving higher in the previous session, the stock closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns. The last time a Bearish Short Candle showed up on April 16th, UA actually gained 6.34% on the following trading day.
Prices are trading close to the key technical support level at 6.95 (S1).
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could accelerate should prices move above the nearby swing high at 7.97 where further buy stops might get triggered. Selling could speed up should prices move below the close-by swing low at 6.91 where further sell stops might get activated.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Harami Candle" stand out. Its common bearish interpretation has been confirmed for Under Armour. Out of 15 times, UA closed lower 53.33% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 66.67% with an average market move of -2.64%.