The move ame after the company reported earnings, where the results were much better than expected.
Further, management’s outlook impressed Wall Street, as investors are now bidding the stock higher. In fact, the stock was hitting its highest level since June 2.
That makes Baird’s bullish call look pretty good, which came just one day ahead of the report.
What do the charts say about all of this?
Trading Under Armour Stock
The charts are looking much better for Under Armour. Shares were obliterated during the COVID-19 selloff in 2020, but the stock made an equally impressive rebound back above $20 later in the year.
Shares broke out over $20 earlier this year, held $21 as support and climbed to $25. Just has it had before, the $24.70 area played a vital role in the recent price action, most recently acting as resistance as the weekly chart shows above.
On the dip, Under Armour stock found support from the 50-week and the 50-month moving averages, while its post-earnings rally is sending it above all of its major weekly moving averages.
From here, I’d love to see the stock hold up above its 21-week moving average. However, bulls need to see Under Armour hold above $21 and the 10-week moving average.
A break below puts $20 or lower back in play, along with some of its major moving averages below that.
On the upside, let’s see if shares can push back up to the $24.50 to $24.75 area. Above that opens the door to $27.50 and potentially higher.
If either of the more “extreme” targets are hit - that being $27.50 on the upside or the 50-week moving average on the downside - then we may need to revisit the stock for another analysis.