Few stocks have outperformed the S&P 500 by a wider margin than Under Armour (NYSE:UA) since the 2009 lows. Despite recent declines, UA has outperformed the broad market by more than 1,000% during the past 6 years.
Below looks at Under Armour's current chart pattern.
UA remains inside a uniform rising channel since the 2009 lows. As mentioned above, a Head-and-Shoulders topping pattern is NOT proven at this time. UA is testing dual support at (1), which seems important to hold for this high-flying stock.
Why is it important to hold at support? Check out below what happens when a stock creates an Eiffel Tower pattern and support gives way.
Restoration Hardware (NYSE:RH) and Valeant Pharmaceuticals (NYSE:VRX) were high flyers over the past few years. Once support was taken out, sellers came forward.
UA has been an upside leader over the past few years. The Power of the Pattern feels this is NOT your typical support test for UA.