Under Armour stock sinks as CEO steps down

Under Armour (UA.US) shares tumbled more than 10.0% on Thursday after Morgan Stanley downgraded sports equipment company stock to ‘equal weight’ from ‘overweight’, saying confidence in its turnaround is waning after CEO Patrik Frisk announced that he would be stepping down, effective June 1. Company's board of directors decided it was time to shift from a restructuring posture, which Frisk oversaw since joining the company in 2017, to one focused on growth.

Under Armour (UA.US) stock has plunged over 50% so far this year. Currently the price is testing the lower limit of the wedge formation around $8.40. Should break lower occur, downward move may accelerate towards $6.40 where lows from March 2020 are located. On the other hand, if buyers manage to regain control, nearest resistance to watch is located at $10.00  and coincides with 78.6% Fibonacci retracement of the upward wave launched in March 2020. Source: xStation5