Under Armour (NYSE: UAA) is one of the leading sportswear companies around the world. However, its stock has been struggling in the recent 2 years as it lost 68% since September 2015.

In our previous article, we pointed out to the current correction taking place which could turn out to be 3 waves flat structure. It turned out to be the case for UAA and the stock currently extending lower into the 123.6% – 1.618% fib ext area (21.49 – 13.32) where it’s expected to end the correction in wave ((II)) and resume higher or bounce in 3 waves at least.

UAA can extend further toward 10.98 which is the target for wave I = wave V but we need to be aware that it has already enough number of swings in place to end the cycle from 09/17/2015. That’s why it’s not recommended to chase the short side at the current stage.

Overall, UAA will remain under pressure until it manages to break the short term pivot of wave IV at 23.46 as a first step then we’ll be looking for the next leg higher to take it above $52 or fall below it for a double correction taking place at a later stage.

UAA Weekly Chart