Friday's close left a bad taste in the mouth of bulls for the weekend. Most of the week's losses were contained to a single day. Getting beyond the single day or even the week, there are some decent-looking weekly charts out there for those looking to buy the recent pullback.
One is new to my watch list, while the other has been a favorite for quite some time.
First up is T-Mobile (TMUS). I do use T-Mobile for my cell service (I'm not sure if I need to disclose that, but at least that's out of the way). The weekly trend looks solid here, although no chart feels without some risk in this market, so let's address the concerns initially here. First, the price pattern is a rising wedge, so a close under the support line just below $39 would create a reversal all the way back to $34.
Fortunately, we are trading at resistance rather than support here, so the upside breakout on a move over $42 should give us the trigger we need to see $45 here. Several oscillators like the Price Momentum Oscillator (PMO) and MACD appear to be primed to cross in favor of the bulls in the next week or two.
I would anticipate those crossovers would occur simultaneously with a price breakout. There's a solid bullish trend on the 21-week simple moving average, which has again crossed above the On Balance Volume (OBV). This has been a key when identified in conjunction with the bullish PMO and MACD for past moves. The positioning here looks like a simple buy a weekly close over $42 and stop on a weekly close under $39.
Under Armour (UA) has been a favorite of mine for some time now. Granted, this one comes with some volatility not every investor is prepared to handle. There are likely to be big moves both higher and lower, although the bulls have gotten the higher moves more times than not -- lately. There are two patterns I'm focused on here. The first is the bullish channel demonstrated by the dotted black lines. Understand, you have to take the August action with a grain of salt to put your faith in that channel. I do since we've traded within it now for a solid year. August was an outlier, but still serves a purpose offering us a secondary support level. UA looks like a buy on any test of $95. Even here, it is bullish. At the very worst, I see it as a hold if I own it.
If I don't own it, then I might consider a wide bullish put spread, something of a $95-8$5 or $90-$85 notion a few months out here. Overall, the PMO, OBV and MACD are all bullish. Crossovers have been good entries, so if you don't want to chase, then set an alert to the PMO or MACD crossover. They've been solid risk-reward entries for the past two years now. Until the bullish channel breaks, the trend here is higher with an upside target only limited by the break in the channel. No, it's not an exact number, but it is still a very tradeable thesis.