UAA breaks below Wednesday's low
Under Armour Inc. Class A (UAA) Technical Analysis Report for Aug 15, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, UAA ended Thursday at 18.51 losing $0.50 (-2.63%), significantly underperforming the S&P 500 (0.25%). Today's close at 18.51 marks the lowest recorded closing price since January 4th. The bears were in full control today, moving the market lower throughout the whole session. Closing below Wednesday's low at 18.89, the share confirmed its breakout through the prior session low after trading up to $0.60 below it intraday.
Daily Candlestick Chart (UAA as at Aug 15, 2019):
Thursday's trading range has been $0.82 (4.29%), that's slightly above the last trading month's daily average range of $0.81. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for UAA.
One bearish candlestick pattern matches today's price action, the Black Candle.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
With prices trading close to this year's low at 17.11, downside momentum might accelerate should the stock break out to new lows for the year.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Under Armour. Out of 415 times, UAA closed higher 51.33% 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 10 trading days, showing a win rate of 56.39% with an average market move of 1.62%.