UAA Under Armour Weekly Chart; Oversold; Positive Divergence

It is hard to find anything worth buying these days since most stocks/indexes are negatively diverged across multiple time frames (topping or topped-out). The stock market keeps printing new highs but there should be a significant pullback at the doorstep perhaps in concert with the Wednesday Fed rate decision.

But Keystone stumbled across UAA. Under Armour was a beloved stock for a long time but now it looks like it has been ridden hard and put away wet. Nasty. From 12 to 4.85 in only 10 months. That is a -60% crash. Wow. What happened? Maybe Lululemon and others have taken share but the Under Armour logo remains everywhere. There must be incompetent management but all that would need looked into and make sure it is not going under.

All that aside, on the charts alone, UAA has paid its dues and is set up to bounce going forward due to the possie d. The overall stock market needs to retreat but UAA was already bludgeoned -60% so it may not feel the wrath of the pending market downside; it is already beaten-up and lying in the alley in a puddle of ravioli sauce next to the dumpster. 

Under Armour makes those fancy shirts that cling to your body. They do not look comfortable. Everyone wants an athletic edge or they want people to think they are athletic. Isn't it funny to see a relative or neighbor wearing workout clothes for many years but they are still fatso's? The only sprint they run is to the refrigerator and back to grab a few chicken legs and a soda before the television commercial ends.

The weekly chart above wants UAA to begin a multi-week rally higher due to the positive divergence (green lines). The -60% is a big beating. Some folks thought the all-clear sounded and jumped in during the summer only to have their heads handed to them as price falls to another low. Looking at the daily chart, there is also universal positive divergence across all indicators wanting to see a rally start. Ditto the 2-hour.

Keystone does not own UAA long or short currently but the obvious play forward is long. It is one of the very few stocks that are a buy in the entire market right now. Keystone will have to look into it a bit more but may buy some for a quickie long trade. It appears to have changed accounting firms. Whenever the word 'accounting' is mentioned with any stock it is sell first and ask questions later. The moves off the positive divergence bottom are typically strong and fast.

Is Under Armour still hip and cool? UAA has crashed into a few pieces but 'we can rebuild it' like the Bionic Man. God Speed Colonel Steve Austin that is wearing an Under Armour tee shirt under his astronaut suit. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.