UA stuck within tight trading range
Under Armour Inc. Class C (UA) Technical Analysis Report for Aug 07, 2020 | by Techniquant Editorial Team
UA finished the week -3.06% lower at 9.20 after gaining $0.16 (1.77%) today, notably outperforming the S&P 500 (0.06%). Trading up to $0.17 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on July 14th, UA gained 8.13% on the following trading day. 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 Aug 07, 2020):
Friday's trading range has been $0.30 (3.3%), that's below the last trading month's daily average range of $0.46. 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. Prices continued to consolidate within a tight trading range between 8.91 and 9.48 where it has been caught now for the last three trading days.
After moving lower in the previous session, the stock managed to close higher but below the prior day's open, forming a bullish Harami Candle.
After trading as low as 8.91 during the day, the market found support at the 50-day moving average at 9.04. Prices are trading close to the key technical resistance level at 9.54 (R1).
Though Under Armour is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Buying might accelerate should prices move above the close-by swing high at 9.48 where further buy stops could get activated. Selling might speed up should prices move below the nearby swing low at 8.75 where further sell stops could get triggered.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Harami Candle" stand out. Its common bullish interpretation has been confirmed for Under Armour. Out of 28 times, UA closed higher 53.57% of the time on the next trading day after the market condition occurred.