Under Armour/UARM - a P&F chart read
The comments that follow are from Dorsey Wright, specialists in Point & Figure (technical) analysis. Please note that DW's comments (specifically, the $82 objective) validates Allan Harris' analysis offered in the earlier post (re UARM) comments area.
For those who wonder, Dorsey Wright provides a fine analytical tool that itself offers a parallax view on perceiving market action. Of course, PnF charts are available everywhere, albeit not necessarily with the interpretataions of seasoned, wise traders. I like the service; you should sample it, if not subscribe.
-- David M Gordon / The Deipnosophist
=================================
Under Armour, Inc/UARM ($49.560) is a member of the Favored Textiles & Apparel sector; and with its Sector BP (bullish percent) still in X's and not yet above the 70% level, this is a sector to consider when trying to find new ideas. UARM is one of the better looking names in the group, as evidenced by its 5 for 5 technical attribute reading. UARM not only trades in an overall uptrend, but the RS (relative strength) chart just gave an RS buy signal in June of this year.
Currently, UARM is:
• On a triple top buy signal, which was given at 50 and also took the stock to new highs.
• There is good near term support in the 44-45 area.
• The upside price objective for UARM is 82.
• So the recent pullback to the 49 level sets up the potential for a bullish catapult formation, but also improves the risk-reward for new positions.
• The weekly momentum has been negative for six weeks now, and is likely to turn positive with today's action.
• The first viable stop loss/hedge point is 43, which breaks two bottoms.
Ok to buy UARM here and on any further pullback; as well, those a little more conservative can consider a covered write on UARM.
For those who wonder, Dorsey Wright provides a fine analytical tool that itself offers a parallax view on perceiving market action. Of course, PnF charts are available everywhere, albeit not necessarily with the interpretataions of seasoned, wise traders. I like the service; you should sample it, if not subscribe.
-- David M Gordon / The Deipnosophist
=================================
Under Armour, Inc/UARM ($49.560) is a member of the Favored Textiles & Apparel sector; and with its Sector BP (bullish percent) still in X's and not yet above the 70% level, this is a sector to consider when trying to find new ideas. UARM is one of the better looking names in the group, as evidenced by its 5 for 5 technical attribute reading. UARM not only trades in an overall uptrend, but the RS (relative strength) chart just gave an RS buy signal in June of this year.
Currently, UARM is:
• On a triple top buy signal, which was given at 50 and also took the stock to new highs.
• There is good near term support in the 44-45 area.
• The upside price objective for UARM is 82.
• So the recent pullback to the 49 level sets up the potential for a bullish catapult formation, but also improves the risk-reward for new positions.
• The weekly momentum has been negative for six weeks now, and is likely to turn positive with today's action.
• The first viable stop loss/hedge point is 43, which breaks two bottoms.
Ok to buy UARM here and on any further pullback; as well, those a little more conservative can consider a covered write on UARM.
[click on chart to enlarge]Labels: Company analyses
posted by David M Gordon | 4:53 AM
<< Home