Under Armour has been a great stock in the last year. You could have made a nice profit already. Although I believe the real run-up only just begun.
Let’s take a look at the chart of my first trade in Under Armour from earlier this year. And I’ll go over the recent chart as well and why I believe it has more upside.
First Under Armour stock trade
It found resistance around $73 in September already. Since then it traded a below that price for a while before it started to gear back up. It retested it’s resistance at the end of November again.
Afterwards it formed another dip to create sort of a cup-and-handle pattern. Although the handle for me was to wide and deep in comparison to the cup.
When it managed to break through the former high on increased trading volume in the beginning of February I bought a small position to see how it would work out.
In the first weeks it couldn’t really go any higher. But than it started to get some momentum and began it’s uptrend.
With some hesitation on the uptrend it managed to get up to $88 just before it’s earnings report half April.
When that was released the stock price started losing some ground.
By drawing the uptrending trendline and looking at the former resistance at $82.50 I decided to lock in my profits at $83.58. Still making a nice 15% profit on my money in 2.5 months.
How does the Under Armour stock look now?
After closing my position in half April Under Armour slipped away further before finding support around $75.
It traded between $75 and $80 for whole May and the beginning of June too.
In early June it started to get some new traction and began the uptrend again. It managed to get back up to $86 which had former some resistance earlier in April as well.
Again Under Armour couldn’t break through $86 at that time. So it started another dip for a couple of days. In those days it managed to slowly climb higher and get back to it’s resistance level.
Forming a very solid looking cup-and-handle chart pattern on the daily chart. It gapped up big and even broke out to new all time highs.
Off course there were a lot of traders taking profits at that time causing the stock to give away it’s gains. It tested former resistance around $86 and got enough power to bounce back above it on stronger volume.
For me the current chart of the Under Armour stock gives me enough confirmation that it is ready to go higher.
It has formed a better looking cup-and-handle and has retested it’s former resistance too. Making a new all time high has lured in new traders looking to profit from the new uptrend.
This all together with the great underlying company has made decide to get back in Under Armour and look for the continuing uptrend of this stock.