UA closes within previous day's range after lackluster session
Under Armour Inc. Class C (UA) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
UA finished the month 12.47% higher at 8.84 after edging lower $0.04 (-0.45%) today, significantly underperforming the S&P 500 (1.54%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (UA as at Jun 30, 2020):
Tuesday's trading range has been $0.35 (3.96%), that's far below the last trading month's daily average range of $0.52. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for UA. Prices continued to consolidate within a tight trading range between 8.10 and 8.99 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, four candlestick patterns are matching today's price action, the Bearish Harami Cross Pattern, the Hanging Man and the Northern Doji which are known as bearish patterns and one neutral pattern, the Doji. The last time a Northern Doji showed up on April 29th, UA lost -5.31% on the following trading day.
Prices are trading close to the key technical resistance level at 8.99 (R1).
The market shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might speed up should prices move above the close-by swing high at 8.99 where further buy stops could get triggered.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Under Armour. Out of 19 times, UA closed higher 57.89% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after nine trading days, showing a win rate of 63.16% with an average market move of -0.43%.