Landshark Team, May 17, 2018
Shares of the athletic performance apparel company have traded significantly higher the past two months.
Trading volume has surged on the stock as of recent and the technical levels on the chart are telling the truth. The bounce around the $14 mark has marked this upward launch as of late.
Competitors also climbed Wednesday. Shares of Nike Inc. (NKE) have just made a large move this week in trading reaching a high of $71.60 at the time of this article.
The impressive move Wednesday was the largest single-day percentage gain for Under Armour stock since Feb. 13, when shares rallied 17.36% in a single session following the company's fourth-quarter earnings report.
At $20.52, the stock is at a 34% premium to the average analyst price target of $15.29, according to FactSet data. Though we know here, at Landshark, that we typically ignore analyst findings and focus on the price charts.
While the broader stock market has struggled to stay in the green for 2018 so far, Under Armour has not. Shares are up 42% year to date, up 8.63% in the last 12 months and up 10.56% in the last five trading sessions.
While Wednesday proved strong for Under Armour, the price chart on it currently suggests that it might be time for a break. Technically the $19-$20 area provides some overhead resistance on the stock.
Click the chart to the right to expand.
What we say on a technical level was the stock find significant trading support around the $13.00-$13.50 area before taking out the February $16.50 area price resistance.
What almost looked like it would become a double top there in early May as sellers tried to take control. This breakout on Under Armour for the year is a great sign but as with all moves it likely needs to test $15.00-$16.00 again to confirm a new area of price support.
A great move so far, with potentially more to come.