Bull Signal Flashing For Popular Apparel Stock

The shares of Under Armour Inc (NYSE:UAA) are up 0.6% at $8.25 at last check. While a catalyst for today's positive price action remains unclear, the sports apparel retail stock is attempting to rebound from a late-December dip from nearly 10-month highs. And while UAA is down 6.3% already in 2024, its latest pullback placed it near a historically bullish trendline that could send it back up the charts in the coming weeks.

Digging deeper, Under Armour stock just came within one standard deviation of its 50-day moving average, after briefly dipping below this trendline. According to data from Schaeffer's Senior Quantitative Analyst Rocky White, three similar signals occurred in the past three years, with UAA enjoying a positive return one month later in 67% of those cases, averaging a significant 3.5% gain. From its current perch, a comparable move would put the security just shy of the $8.60 mark.

The brokerage bunch is leaning bearish towards Under Armour stock, leaving ample room for upgrades going forward. Of the 21 analysts in question, 14 carry a tepid "hold" or worse rating, while the remaining seven say "strong buy." A short squeeze could also fuel additional gains, as short interest currently makes up 8% of the stock's available float.

Now seems like a good opportunity to weigh in on UAA's next move with options. The security's Schaeffer's Volatility Index (SVI) of 40% stands in the low 12th percentile of its annual range, indicating options players are now pricing in low volatility expectations.