UA broke above a 6-month pivot point resistance at $55 on Wednesday causing the traders to climb aboard aggressively for a $2 move up as no resistance is found until the $58 level is reached. Having closed on the highs of the day/week it is likely further upside will be seen immediately with the resistance level reached Monday or Tuesday. Nonetheless, the stock does show a strong congestion area that was built between July and October of last year between $58 and $61 that is unlikely to get broken without some additional strong fundamental help.
UA has been on a strong straight up rally that started March 19th at 48.09 and that now spans $9 and should the resistance levels be reached this coming week it would mean the stock will have appreciated 25% in value in just 4 weeks, which is likely an overextended situation since no major positive fundamental information about the company has been released that would support this kind of a move.
It should be mentioned that in July of last year UA took a $3.50 dip in price a couple of days before the third quarter earnings report came out. The dip came after the same type of strong 6-day rally as is being seen now, suggesting the same thing could happen this week before Friday's earning report. On that occasion the earnings report was positive, pushing the stock up to 58.48 which is now one of the upside objectives likely to be reached Monday or Tuesday. The earnings report on Friday is expected to come out at $.03 cents which is way below last year's $.28 cent earnings and that does suggest this earnings report is not likely to generate the same kind of a rally as the one last July.