May 16 Chart of the Day - Under Armour

Precision oriented price action technical analysis by far provides the best edges and most setups for traders and investors across the markets so that's what we use for the basis of our reviews

Under Armour (UAA) forecast a surprise drop in annual sales and projected profit below analysts' estimates on Thursday, as the sportswear maker laid out a plan to simplify its business and cut jobs in the face of weak demand in the US.

The company's weak projection echoed disappointing forecasts from sportswear peers Nike and Lululemon Athletica so we wanted to review Under Armour's chart from a price action technical analysis perspective.

Monthly Chart 

On the monthly chart we can see that after setting its $54.70 all time high (ATH) back in 2015 price fell dramatically over time and seemingly found a bottom and bounced around the $7 area.

Since then, price has been making a series of lower highs and lower lows but pretty much trading sideways for the past year.

Weekly Chart

 
On the weekly chart we can see with much more clarity the dramatic fall from ATHs and sideways movement during the past year.

Price traded as low as $5.65 in after hours trading but has rebounded some today.  Currently trading at $6.85 this area on the chart is not the "last chance" for the bulls however, they seemingly are running low on chances to get back in control.

We've layered in traditional Fibonacci levels as well as support/resistance and trend to help identify potential price levels of interest and/or future price targets.

Armed with precision oriented charts like these both traders and investors can formulate their respective plans.

So what's next?