UA pushes through Tuesday's high
Under Armour Inc. Class C (UA) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
UA ended Wednesday at 10.70 surging $0.45 (4.39%), strongly outperforming the S&P 500 (-0.46%). This is the biggest single-day gain in over a month. The last time we've seen such an unusually strong single-day gain on Monday, UA actually lost -0.49% on the following trading day. Today's close at 10.70 marks the highest recorded closing price since March 6th. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Tuesday's high at 10.40, Under Armour confirmed its breakout through the prior session high after trading up to $0.49 above it intraday.
Daily Candlestick Chart (UA as at Sep 16, 2020):
Wednesday's trading range has been $0.64 (6.24%), that's far above the last trading month's daily average range of $0.38. Weekly volatility is also higher, being 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.
Buyers managed to take out the key technical resistance level at 10.54 (now S1), which is likely to act as support going forward.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 9.38.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "Close above the upper Bollinger Band" stand out. Although it is usually interpreted as bullish, it has actually shown to be bearish for Under Armour. Out of 59 times, UA closed lower 55.93% 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 71.19% with an average market move of -4.51%.