The company Under Armour (UAA) has made some missteps recently and UAA the stock has suffered for it. Prices are down sharply today so it's a good time to see what has happened to the charts.
In this daily bar chart of UAA, below, we can see that prices have struggled the past 12 months. Prices have traded sideways between $7 and $12 for the past five months. Prices are above the rising 50-day moving average line now but that condition may not last for long as prices are down sharply today.
UAA is below the declining 200-day moving average line. The line has been in a negative trend the past 12 months and intersects up around $14.
The On-Balance-Volume (OBV) line made a low in May but since then it has not shown much in the way of sustained aggressive buying. This does not look very supportive to higher prices.
The Moving Average Convergence Divergence (MACD) oscillator is just slightly above the zero line but crossing to the downside. We could see an outright sell signal in the days and weeks ahead.
In this weekly bar chart of UAA, below, we can see that prices have been depressed the past five years. UAA is below the declining 40-week moving average line. The weekly OBV line and the MACD oscillator are bearish.
In this daily Point and Figure chart of UAA, below, we can see a nearby downside price target of around $9.75. Prices might hold here or slip even lower. A decline to $9.75 on UAA would put it below the 50-day moving average line.
Bottom line strategy: Unfortunately the products are better than the stock. UAA is likely to remain weak for the intermediate term as the executive team has a lot of work to do.
