not vested
Apparel Stocks to Watch: Under Armour (UA)
Under Armour Inc (NYSE:UA) was founded in 1996 by former University of Maryland football player Kevin Plank. The company focuses primarily on performance apparel, engineered to make individuals better any time they hit the field.
As stated on the company’s website, they introduced the ColdGear fabric in 1997 to keep athletes warm, dry and light in cold conditions, followed by the AllSeasonGear line, which keeps them comfortable between the extremes.
Using Profit Scanner, we are able to get a quick assessment of UA stock. Similar to HBI, the wheels slowly started to come off in the final months of 2015.
After a steep drop from about $55 to $32 per share, investors have been whipped back and forth in UA. What appears to be a meandering stock with no direction is actually one locked in orderly chaos, but only if you pull back and look at a longer timeframe rather than the day-to-day fluctuations.
As the zig-zags grew tighter and tighter, it became clear that the price formation was that of a technical “Symmetrical Triangle” pattern. While we know this to be a continuation of the trend, which is currently bearish in nature, it is important to wait for confirmation prior to initiating a trade in anticipation of further price declines.
Profit Scanner recently provided subscribers with two events (price below 50-day moving average and price below 21-week moving average) back on Aug. 31 and Sept. 2, respectively. These two bearish events helped push shares down and out of the symmetrical triangle, confirming the continuation of the prior bearish trend.
This means that shares should hit $30 in the weeks and months ahead and could potentially slice through that level without much of a fight.
Source: Investor Place