Trade Alert – Decline In Under Armour Stock Opens Up 2 Trades for Nov 17 2015

Nov 17, 2015 | Trade Alerts and Ideas, Under Armour Stock (UA)

Under Armour Stock has had a terrific run-up. However the latest chart pattern shows that the stock is breaking the long-term uptrend it has been in.

Under Armour Stock 3 Year Chart

Looking at the 3 year chart we can see that the $92.00 support level has been broken in this latest downturn and the stock today appears headed to the $8 valuation. That would mark the August 24 panic low for the stock. It could also mark the bottom of the sell-off. The stock today already reached an intraday low of $84.19.

The rise in the stock has been dramatic and this will to be the first time the stock has taken a nose-dive. Last year the stock collapsed from $80 to below $50. However with a price to earnings ratio of 93.2 times and earnings of just 97 cents per share, the stock is being held up by those investors who expect big things out of Under Armour in coming years. However at 21 times price to earnings the stock would be trading around $20.

Under Armour Stock 3 Year Chart

Under Armour Stock Trade Alert

This is a very speculative stock and I entered two highly speculative trades. I like both of my trades and can easily defend them but if my outlook is wrong and the stock moves still lower it will require more capital being committed to keep the trade profitable while being rescued.

This trade alert article in Under Armour Stock is for FullyInformed Members.

Trade Alert – Under Armour Stock for Nov 17 2015

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Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.