I have some AUGUST CALLS that I have bought for UA prior to its earnings. Along the way, I took some profits.
Even then, yesterday’s UA dramatic drop despite its good earnings have me thinking whether my bullish view on UA will hold.
From the chart, definitely that long bearish candle is a sell.
1. At current level, it is sitting right on the Kijun sen support level around. High chance, we will see a little bit more selling over the next few days. There is no sign of a bearish cross (Tenkan sen cuts Kijun sen) at this point.
2. The leading kumo is still up and have not twist to show a change in trend.I will look for an entry nearer to $70 (where the kumo support is). Â The entry will most likely be a combination of CALLS and Vertical Spreads (subject to change depending on chart).
I believe, UA is doing everything right at this point in time and it should have no problem hitting $90. I am looking at a September timeframe for UA to hit $90.