Under Armour (UAA) surged 15% after it reported earnings per share that met Wall Street estimates and exceeded on revenue, posting $1.4 billion versus the $1.3 billion expected.
In addition, management announced that it would continue the restructuring efforts it started in 2017 to refine key components of its operations.
Under Armour’s performance in Q4 and plans for continued improvement could be building a bullish base for later this year. Today’s earnings surge puts Under Armour’s stock price into a red resistance zone for its current market cycle (as seen on the chart below). However, we expect a pullback at the cycle comes to a close and the next cycle begins.
This would set the stage for a bullish base for UAA, presuming the stock doesn’t fall below the cycle low of $11.40 set by the previous cycle. Keep an eye on this one into April.
The market cycles on the chart below are designated by the purple semicircles at the bottom of the chart.
UAA Chart (Weekly Bars)
Visit our site for more on our approach to using market cycles to analyze stocks.
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.