Under Armour Earnings Miss Forecasts – Cycles Point to More Trouble Ahead

Steve Miller

Under Armour NYSE: UAA reported earnings on Monday. Both earnings per share (EPS) and revenue missed expectations.

The company reported an adjusted loss of 34 cents on revenue of $930.2M.

Consensus estimates called for an adjusted loss of 19 cents on $949M in revenue.

Under Armour announced plans to cut around $325M in operating costs in 2020.

Given this background, let’s take a look at the weekly chart.

Note the current price action and cycle projection.

Under Armour (UAA) Chart

under armour stock price downgrade lower price targets investing chart_may 11 2020

At askSlim we use technical analysis to evaluate price charts of stocks, futures, and ETF’s. We use a combination of cycle, trend and momentum chart studies, on multiple timeframes, to present a “sum of the evidence” directional outlook in time and price.

askSlim Technical Briefing:

The weekly cycle analysis suggests that UAA is in a declining phase in a very negative intermediate-term pattern. The next projected intermediate-term low is due in July. Weekly momentum is currently positive and poised to roll over.

under armour stock price ticker uaa forecast analysis bearish lower investing image_may 11 2020

On the upside, there is an intermediate resistance at 10.82 followed by another zone of resistance from 12.95 – 14.67. On the downside, the only visible support is the recent cycle low at 7.39. For the bulls to regain control of the intermediate-term, we would need to see a substantial rally back over 18.84 to repair some of the damage done on the downside.

askSlim Sum of the Evidence:

UAA is in a very negative intermediate-term pattern. There is a likelihood the stock trades below the prior cycle low at 7.39 and down below 7 by July.

Interested in askSlim?

Get professional grade technical analysis, trader education and trade planning tools at askSlim.com. Write to matt@askslim.com and mention See It Market in your email for special askSlim membership trial offers!

Twitter:  @askslim

Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.