Under Armour Class C stock (NYSE: UA) has been in a recovery mode since the 2nd of August, when it hit support at around 17.65, near the upside support line drawn from the low of the 6th of February. From a technical standpoint, the fact that the price recovered from that line suggests that the medium-term outlook of the share remains somewhat positive.
For the last three days, the price has been oscillating around the psychological zone of 20.00, and yesterday, it closed at 19.94. If the bulls are strong enough today to push the stock decisively above 20.00, then we may see them aiming for our next resistance of 21.00, defined by the peak of 26th of July. Another break above that zone could prompt more upside extensions and could set the stage for the 22.60 resistance, near the highs of the 6th and 29th of June.
Looking at our daily oscillators, we see that the RSI lies above its 50 barrier and points north, while the MACD stands above its trigger line, near zero. It appears ready to enter its positive territory soon. These indicators detect upside momentum and support the case for this stock to trade south for a while more.
On the downside, we would like to see a clear close below 18.85 and the upside support line drawn from the low of the 6th of February before we abandon the bullish case. Such a dip could initially aim for the 17.65 support, the break of which could extend the slide towards 16.80, a support defined by the inside swing peaks of the 16th of February and the 2nd of May this year.
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