UAA dominated by bears dragging the market lower throughout the day
Under Armour Inc. Class A (UAA) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
UAA ended the week 8.17% higher at 8.34 after losing $0.34 (-3.92%) today, notably underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. The bears were in full control today, moving the market lower throughout the whole session. 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 (UAA as at May 22, 2020):
Friday's trading range has been $0.49 (5.61%), that's below the last trading month's daily average range of $0.61. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for UAA.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle. The last time a Black Candle showed up on Tuesday, UAA actually gained 5.51% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the close-by swing high at 8.94 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 7.66 where further sell stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Under Armour. Out of 680 times, UAA closed higher 51.47% 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 54.71% with an average market move of 0.53%.