Under Armour Hits Downside Price Target

Under Armour Hits Downside Price Target

I highlighted the potential for a technical breakdown in Under Armour (UA) in an “Off the Charts” segment of Mad Money on 10/12/16. A large symmetrical triangle pattern had formed on the weekly chart and the pattern uptrend line was being retested. A breakdown projected a targeted the $20.50 area and the breakdown quickly followed and now the price objective has been met. The $21.00 area is also a 62% retracement of the stock’s rally off its 2009 low to 2015 high. It was an incredible rally and unfortunately the decline has been equally as remarkable.
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So with the pattern objective met is it a time to buy Under Armour? A long term investor who has a fundamental belief in the company could start to build a position at these levels, but for a technical trader there needs to be more evidence in the way of basing price action to substantiate the target projection.