My last post on Under Armour (UA) forming a letter ‘M’ did not turn up well.
UA held its ground above the fairly thick kumo support and did not go down.
With that consolidation, UA make a strong move upwards yesterday with above average volume.
I have a SHORT CALL spread on UA. With this strong move, it is time to acknowledge the mistake and take my lost.
What were your short call spread legs? Looking at the weekly chart, UA is showing a DUU pattern right now (down candle, up candle, up candle) with the second U still yet to breach the high of the down candle. This more or less translates to the double top in the daily chart and a potential triple top.
If time wasn’t an issue, it might be worth seeing if the next weekly candle fails to breach the top of the first up candle. If it doesn’t, then I think there’s a good chance of a DUUUD forming.
Sorry, the 2nd paragraph should read:
“If time wasn’t an issue, it might be worth seeing if the next weekly candle fails to breach the top of the first DOWN candle. If it doesn’t, then I think there’s a good chance of a DUUUD forming.”
UA breakout. Triple top did not materialise.
I stick to my original plan to cut loss and get out of the position.