UAA pushes through Thursday's high
Under Armour Inc. Class A (UAA) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
UAA finished the week -15.11% lower at 17.19 after gaining $0.43 (2.57%) today, significantly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. The bulls were in full control today, moving the market higher throughout the whole session. Closing above Thursday's high at 17.05, Under Armour confirmed its breakout through the prior session high after trading up to $0.16 above it intraday.
Daily Candlestick Chart (UAA as at Feb 14, 2020):
Friday's trading range has been $0.45 (2.68%), that's far below the last trading month's daily average range of $0.67. 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 notably higher than usual for UAA. Prices continued to consolidate within a tight trading range between 16.57 and 17.49 where it has been caught now for the last three trading days.
Three candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and one bearish pattern, the Bearish Hikkake Pattern.
Prices are trading close to the key technical support level at 16.74 (S1). Prices are trading close to the key technical resistance level at 17.39 (R1).
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 19.88. The last time this happened on November 6, 2019, UAA actually lost -3.19% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying might speed up should prices move above the nearby swing high at 17.49 where further buy stops could get activated. Selling might accelerate should prices move below the close-by swing low at 16.50 where further sell stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Up Move" stand out. Its common bullish interpretation has been confirmed for Under Armour. Out of 321 times, UAA closed higher 55.14% 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 56.70% with an average market move of 0.87%.