Under Armour Going Soft

I've been looking at Under Armour (UA) lately, and I can make a case for a short position here, given its series of lower lows and highs since the Sept. 14 high. Within this bearish pattern in place, I'm seeing a Fibonacci price cluster of resistance that the stock is currently testing at the $55.14-to-$56.35 area.

Under Armour (UA) -- Daily Source: Dynamic Trader View Chart » View in New Window »

The levels overlap each other quite well here, so you will not be able to read them -- which is why I have labeled them on the chart. This zone includes the coincidence of at least five price relationships that come together within a relatively tight range, with two of those representing 100% projections of prior rally swings. Oftentimes a market will stall or terminate a move around these projections. Also note the similarity of this last 13-session $6.30 swing and the $6.24 climb into the Sept. 14 high, which likewise lasted for 13 trading days....294 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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