Don't Ignore This Chart!

The Golden State Trade with Oracle and Under Armour


Two stocks associated with the Golden State Warriors are showing promise as Step Curry leads his team to a 3-2 lead in the series. The Warriors play in the Oracle Arena and Oracle (ORCL) is making waves with an ascending triangle. Admittedly, the pattern is a little long and the prior advance (mid March) is short for a bullish continuation pattern, but the essence of the pattern is there. Notice how the stock formed higher lows from April to June and horizontal resistance resides at 45. A breakout here would target a move to new highs in this software giant. 

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The second stock is Under Armour (UA), which supplies the footwear to Stephen Curry. UA surged to new highs in March-April and then retraced 50% with a pullback to 76. The stock found support here throughout May as a tight consolidation unfolded. UA broke out with a gap and this gap is holding. I would consider this gap-breakout valid as long as 79 holds. The indicator window shows the StockCharts Technical Rank (SCTR) above 85, which means UA shows some serious relative strength. 

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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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