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by Darius Anucauskas

Under Armour Stock Is Forming An Ascending Triangle

After a sharp fall in the end of July, the Under Armour Inc stock (NYSE: UA) found some good support near the 15.95 hurdle, from which it started moving back up again. Although the price structure is of higher lows, the stock is struggling to bypass the 19.47 barrier. This way, we are noticing a possible ascending triangle pattern, which, according to TA textbooks, tends to break to the upside. That said, until we see a clear break and a daily close above the 19.47 area, we cannot get comfortable with the upside, hence why we will stay side-lined, at least for now.

If we eventually get a daily close above the 19.47 barrier, this might spark some interest among new buyers and the stock may drift to the 20.00 hurdle, which is marked by an inside swing low of July 31st. Initially, the price might stall around there, but if the buying continues, a break of the 20.00 obstacle could lead UA to the 21.32 level, marked by the high of July 30th.

Our oscillators, the RSI and the MACD, are somewhat flat right now and are not showing us any clear direction. The RSI is flat and continues to balance around 50. The MACD is above zero and just fractionally above its trigger line, which doesn’t add much confidence yet. Both indicators support our idea of staying neutral, for now.

Alternatively, if the stock breaks its short-term tentative upside support line taken from the low of August 28th and the price slides below the 17.59 area, which is the low of October 18th, this could send it to the next potential support zone, at 16.96. The stock could stall around there for a bit, but if there are still no takers of the stock at that price, a further move down could set the stage for a test of the lowest point of August, at 15.95.

Under Armour daily

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