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.
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.