UAA closes within prior day's range after lackluster session
Under Armour Inc. Class A (UAA) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
UAA ended the month 11.31% higher at 9.74 after edging lower $0.09 (-0.92%) today, strongly underperforming the S&P 500 (1.54%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (UAA as at Jun 30, 2020):
Tuesday's trading range has been $0.38 (3.89%), that's far below the last trading month's daily average range of $0.59. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently lower 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. After moving higher in the prior session, the share closed lower but above the previous day's open today, forming a bearish Harami Candle. Additionally, two candlestick patterns are matching today's price action, the Bearish Spinning Top and the Hanging Man which are both known as bearish patterns. The last time a Bearish Spinning Top showed up on June 8th, UAA lost -5.13% on the following trading day.
Prices are trading close to the key technical support level at 9.32 (S1). Prices are trading close to the key technical resistance level at 10.00 (R1).
Under Armour shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 9.97 where further buy stops could get triggered. As prices are trading close to June's low at 8.73, downside momentum might speed up should the stock mark new lows for the month.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bearish Spinning Top" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Under Armour. Out of 197 times, UAA closed higher 58.88% 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 56.35% with an average market move of 0.53%.