Rare Technical Occurrence Suggests Shorting Under Armour

A head-and-shoulders pattern has formed within a bearish horn

   
Rare Technical Occurrence Suggests Shorting Under Armour

Under Armour (UA) — This athletic apparel maker, with a P/E north of 70, rebounded from a low of $100.65 on Monday. But it is rebounding from a head-and-shoulders bearish breakdown, which had a downside target of $100. And that head-and-shoulders pattern is within a bearish horn — a very unusual negative development.

In the past five trading sessions, downside volume has been almost twice upside volume, and the MACD indicator is in bearish territory. Note the open gap made in January from $87.53 to $96, another negative, and a target for short-sellers. 

UA was discovered as a short-sale candidate by our Profit Scanner system, which has a downside target of $79-$83. Short selling is a speculative technique. Check with your broker for any special requirements and protect your trade with a stop-loss order.

04 10 14 ua 300x191 Rare Technical Occurrence Suggests Shorting Under Armour
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chart key 300x84 Rare Technical Occurrence Suggests Shorting Under Armour


Article printed from InvestorPlace Media, http://investorplace.com/2014/04/trade-day-armour-ua/.

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