It’s hard to come up with a better example of momentum gone wrong than Under Armour (UAA). From January 2009 through the highs in September 2015, the sports apparel company returned over 3,000% or 70.3% per year. Then it all fell apart and the stock collapsed 78% on a number of negative catalysts: slowing margins, slowing growth, and extreme valuation were all reflected in the huge decline in the stock’s price. Since the end of 2017, though, the stock has performed much better, though it carved out a double top over the course of 2018. With the gap above that resistance this week, the stock is into the gap formed by earnings reported at the start of 2017, and there’s another gap for the stock to fill even higher. Combined with rising 50 and 200 DMAs, this is an attractive long-term chart from a technical perspective.
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