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Under Armour (UAA) - A False Bullish Breakout Puts Pressure on the Range Support

Last week, I discussed that key of UAA holding above 20 if it is to establish a price bottom, making 20 an idea entry point because if price slides below it, we immediately know we are wrong. And the market told us we were wrong if we thought UAA was going to make a stand here. Instead I think this weeks price action suggests further downside in UAA.

Under Armour (UAA) Daily Chart

(click to enlarge)

False Breakout:
- In June, there was a bullish breakout above the common resistance of 22.20. 
- However, the rally quickly stalled and price came back down.
- At first, price respected 20, but the eventual breakdown below 20 reflects the fact that the June bullish attempt has failed.
- A failed bullish breakout now puts pressure on the downside. Since the prevailing trend has been bearish, the failed bullish breakout suggests bears are still in charge, so we should NOT rely on support around 18.40 outside of a very short-term reaction.