Q2 STOCKS TO BUY

Under Armour Stock Sends Up Bull Signal After Bear Note

Under Armour is finding familiar support at its 320-day trendline

Dec 19, 2018 at 9:46 AM
facebook X logo linkedin


J.P. Morgan Securities cut its price target on Under Armour Inc (NYSE:UAA) to $21 from $25, though this is still an 11.6% premium to last night's close. In reaction, UAA stock is down 1.2% to trade at $18.58, but finding support near its 320-day moving average, which served as a floor in late October, too.

The pullback to this trendline could signal a short-term rally for Under Armour shares. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, the stock's previous retreat to this trendline resulted in a one-month gain of 25.9%, and culminated in a record high of $24.96 earlier this month. This would just echo UAA's long-term performance this year, with the shares up 29% so far.

Options traders have been buying to open puts over calls at a quicker-than-usual clip in recent weeks. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), UAA's 10-day put/call volume ratio of 1.40 ranks in the 81st annual percentile.

This skepticism is seen outside of the options pits, too, with 19 of 24 covering analysts maintaining a "hold" or worse rating on Under Armour stock. Plus, the average 12-month price target of $20.96 is a tame 12% premium to current trading levels. Should UAA take another sharp bounce from its 320-day trendline, a capitulation from some of the weaker bearish hands could fuel the stock's fire.

 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here