Under Armor (UA) took a big hit last week on news of more costs and the CEO dumping Class C shares. According to the chart, the stock is right on the uptrend. Any break of the $38 sets up tests of $36, $34, and $32. From a fundamental basis, the stock is expensive as Under Armour trades at nearly 50x forward EPS estimates. The stock trades at a more reasonable 2.5x sales estimates and close to the multiple of Nike (NKE). Valuation exists as soon as Under Armour signals that costs actually matter and profit growth is a goal. For this reason, I'm looking for the stock to break $38 before considering any purchase. Disclosure: No position