Under Armour (UAA) has suffered a string of bad headlines -- including its CEO departing, Wall Street downgrades, along with recent retail fears -- so let's check on the charts to see if the news is discounted in the price action.
In the daily bar chart of UAA, below, we can see that the shares have been more than cut in half in just six or seven months -- this tells you there is a "rush for the doors," so to speak. Despite a significant decline, the shares still made a sharp downside price gap earlier this month. Prices are below the declining 50-day and 200-day moving average lines.
The daily On-Balance-Volume (OBV) line shows weakness from November as traders have been more aggressive sellers than buyers. The Moving Average Convergence Divergence (MACD) oscillator is below the zero line but narrowing towards a potential cover shorts buy signal.
In the weekly Japanese candlestick chart of UAA, below, we can see that prices are back down in the area of the early 2020 lows. The gap on the daily bar chart disappears on this weekly candle chart. The middle of the long red (bearish) candle is likely to act as resistance -- keep the $13 area in mind. No bottom patterns are visible.
The weekly OBV line is bearish as is the MACD oscillator.
In this daily Point and Figure chart of UAA, below, we can see the decline without the price gap on the daily bar chart. A downside price target of $10.51 is shown.
In this weekly Point and Figure chart of UAA, below, we can see a potential price target in the $4 area. A decline below $5 will be a problem for institutional accounts.
Bottom-line strategy: The charts of UAA are bearish and have yet to bottom, according to my analysis. The company has its work cut out for itself.
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