When we analyzed Under Armour, Inc. (UAA) at the beginning of May, we said, "Traders who bought UAA in late February or March at $16 or better should continue holding those positions. Additional longs could be purchased above $19. Risk below $15 now and $30 is our longer-term price target after $25." Traders following this advice should have added to their long position. Let's check the charts and see if we can raise the sell stops or any other changes to our bullish strategy.
In this daily bar chart of UAA, below, we can see that the indicators have improved this month. Prices are still above the rising 50-day moving average line. The 200-day line is now flat. The daily On-Balance-Volume (OBV) line has continued to rise telling us that buyers of UAA have been more aggressive this month. The daily Moving Average Convergence Divergence (MACD) oscillator continues to move up to confirm this advance.
In this weekly bar chart of UAA, below, continues to improve. UAA is above the 40-week moving average line which has turned flat and should soon turn positive. The weekly OBV line is steady and close to making a new high for the move up. The weekly MACD oscillator just crossed above the zero line for an outright go long signal on this longer time frame.
In this Point and Figure chart of UAA, below, we can clearly see the breakout on the upside at $19.00. A $30.00 price target is being projected.
Bottom line: I like the way this trade is playing out. Traders can continue to hold long positions and new purchases. Raise sell stop protection to just below $16.00 and set your sights on $30 over the next several months.