Under Armour (NYSE:UAA) has been consolidating above key support since its powerful post-earnings gain back on Feb. 10. This bull flag is giving way today, setting shares up well for a move into new 2021 high territory.
UAA has now extended its rally off the 50-day moving average, which held the January-February lows, to 32%.
We highlighted UAA back in May as it retested the March-April lows. The stock has gained more than 185% since the May 20 close.
We regard UAA as a low-risk buy at current levels. A close back below last week’s low ($21.00) would indicate more consolidation is needed before new 2021 highs can be reached.
Note: We are long UAA in some managed accounts.
You can read Gary S. Morrow's original post here.