Under Armour, Inc (UA) hasn’t had it easy lately, sliding more than 18% since August and drifting dangerously close to its all-time lows. However, Tuesday’s action changed the narrative. The stock surged 8.59%, and the driver wasn’t just a random bounce—it was fueled by a massive 15.6-million share purchase by high-profile Canadian investor Prem Watsa.
This heavy-hitting buy has pushed UA into a potential near-term breakout scenario. Looking at the weekly chart, the price has just poked its head above a long-term declining trendline at $4.89 that stretches all the way back to May 2020. This is a significant technical milestone, but the bulls aren’t out of the woods yet.
For this breakout to be truly “secured,” we need to see follow-through. Resistance is sitting right overhead, first at $5.15 and then at $5.51. Adding to the challenge is a separate declining trendline from December 2024 that cuts right through those levels. To punch through that double-layer of resistance, UA will likely need the help of a short squeeze to create the kind of sustained buying pressure that turns a temporary pop into a real trend reversal.
Weekly chart:
Daily chart:
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