On last night's "Mad Money," during the "Off The Charts" segment, Jim Cramer and colleague Dan Fitzpatrick went over the charts of Under Armour Inc. (UAA) , to see if the athletic apparel market has more room to run -- and both bet it does.
Under Armour made a major upside breakout earlier this month. There is still more on the upside according to the charts and indicators. Let's try on a few charts.
In this daily bar chart of UAA, below, we can see part of the base pattern and the upside break out around $25 earlier this month. Prices are rising quickly with the slopes of both the 50-day moving average line and the 200-day moving average line positive. The daily On-Balance-Volume (OBV) line shows a strong rise from December to new highs to confirm the price gains as it tells us that buyers have been more aggressive for months. The Moving Average Convergence Divergence (MACD) oscillator is in a bullish mode above the zero-line since May.
In this weekly bar chart of UAA, below, we can see a base pattern that goes back to early 2017. A neckline across $25 helps to define the pattern. UAA is above the rising 40-week moving average line. The weekly OBV line shows a similar bottom pattern. The MACD oscillator gave a buy signal in December and it is still pointed higher.
In this Point and Figure chart of UAA, below, we can see a breakout at $25.17 and an upside price target around $36.
Bottom line strategy: UAA has broken out of a large base pattern, so we should see a length move higher. $36 is our Point and Figure target. Traders should go long on a dip to $26 and investors who are long from lower levels can add here and risk a close below $24.