We tried on the charts of Under Armour (UA) back in December, and I wrote, "Bottom line -- with no good signs of a bottom, I would wait for UA to show us more." Prices stalled in early January short of the declining 200-day moving average line and then retreated back down to around $12 for a retest of the November low. UA gapped higher a few weeks ago but continue hugging the 200-day average line. Is this a comeback in the making?
In this daily bar chart of UA, below, we can see some overall improvement since early November. The "retest" in February helps the story along with a rising 50-day moving average line. The On-Balance-Volume (OBV) line is inching up, slowly and the Moving Average Convergence Divergence (MACD) oscillator is in positive territory above the zero line.
In this limited weekly bar chart of UA, below, we can see prices making a rounded bottom pattern. Prices are trying to close above the declining 40-week moving average line. The weekly OBV line has been showing some improvement the past four months and the MACD oscillator has made a significant move up towards the zero line.
In this Point and Figure chart of UA, below, we can see a "fulcrum bottom" formation and a longer-term upside price target of $25.
Bottom line -- traders with patience can look to go long UA in the $16-$14 area risking below $12. $25 is the long-term price target.
