UA dominated by bulls lifting the market higher throughout the day
Under Armour Inc. Class C (UA) Technical Analysis Report for Aug 05, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, UA finished Wednesday at 9.44 gaining $0.50 (5.59%), significantly outperforming the S&P 500 (0.64%). The bulls were in full control today, moving the market higher throughout the whole session. Ending with a strong close near the high of the day sets a bullish note for the next session.
Daily Candlestick Chart (UA as at Aug 05, 2020):
Wednesday's trading range has been $0.44 (4.86%), that's slightly below the last trading month's daily average range of $0.47. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for UA.
One bullish candlestick pattern matches today's price action, the White Candle.
Under Armour managed to close back above the 50-day moving average at 9.01. When this moving average was crossed above the last time on July 10th, UA actually lost -1.97% on the following trading day. Unable to break through the key technical resistance level at 9.45 (R1), the share closed below it after spiking up to 9.48 earlier during the day. The failure to close above the resistance might increase that levels importance going forward.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Resistance R1" stand out. Its common bearish interpretation has been confirmed for Under Armour. Out of 165 times, UA closed lower 52.12% 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 53.33% with an average market move of -1.46%.