UAA pushes through key technical resistance level
Under Armour Inc. Class A (UAA) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
UAA ended Wednesday at 12.23 surging $0.57 (4.89%), significantly outperforming the S&P 500 (-0.46%). Today's close at 12.23 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 11.82, the share confirmed its breakout through the previous session high after trading up to $0.60 above it intraday.
Daily Candlestick Chart (UAA as at Sep 16, 2020):
Wednesday's trading range has been $0.76 (6.51%), that's far above the last trading month's daily average range of $0.44. 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 UAA.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 11.80 (now S1), which is likely to act as support going forward. The last time this happened on September 8th, UAA actually lost -3.29% on the following trading day.
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 although might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 10.52.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Very Strong Up Move" stand out. Its common bullish interpretation has been confirmed for Under Armour. Out of 109 times, UAA closed higher 55.05% 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 57.80% with an average market move of 0.68%.