Under Armour (UA: sentiment, chart, options) , why have you forsaken me? I was famously bullish toward this company last year, and have been rewarded with a stock that seems happy to shuffle sideways between the 38 and 32 levels. While a glimpse of a daily chart makes it appear that UA is in a consolidation period, I am a bit more concerned about the weekly chart. The intermediate-term chart shows significant overhead pressure in the form of UA's 10- and 20-week moving averages. The last time UA closed a week above this gruesome twosome was back in September. The stock is more than 6% lower today, and that isn't helping its case at all.

Why are the shares lower? Well, Thomas Weisel downgraded the apparel retailer to "market weight" from "overweight." The brokerage noted that "soft" results and forecasts from key retailers speak to challenges in the marketplace and took it out on UA. The brokerage did address UA specifically, noting that "persistent weakness in the sporting goods channel" and a "belief that fiscal 2008 is an important investment year for Under Armour, we [Weisel] see inherent tension on current guidance." The downgrade was accompanied by a price-target cut to $35 per share from $42 per share. Weisel also cut its fiscal 2008 earnings estimate to $1.12 per share from $1.19 and its 2009 forecast to $1.41 per share. Both of these estimates are below the consensus Street forecasts. With all this negative news, the brokerage did state: "While we remain compelled by the strength of the Under Armour brand and the long-term growth opportunities, we are challenged to recommend the stock at this juncture." I whole-heartedly agree with the long-term assessment for UA ... so, could this be a buying opportunity?