Recent price action in Under Armour shares has been extremely bullish, if you ask me.  After getting to $70, the stock took a breather and fell down to low-mid 60s.  If you were smart enough to buy on say March 29, under 65, and sell a few days ago, you could have a made a small fortune on calls as it got up to over 76. 

Since peaking, it's come back down to a nicer entry point, and I think we'll see the classic pattern of prior resistance becoming key support - with that number around 70, more like 70.60 or so.  It could certainly return to that level in the next few days, even touch under 70.  If it does touch 70, as my friend Chris Cook is fond of saying, "back up the truck."

A critical turning point occurred recently as the stock took out its all-time high, and convincingly so.  This all-time high was going back to 2007.  In March 2009 the stock bottomed at 11.94.  So in 2 years the stock has gained 500% - not bad at all.

Recent run-up would seem to me to be related to recent release of new product line Charged Cotton, which Michael Binetti, an apparel analyst at UBS, said "could make for a big 2011 for them."

http://www.underarmour.com/shop/us/en/cotton

I will leave the marketing to them - the other day I was out somewhere after going to the gym and was asked if I worked for UA.  Nope!  Just like wearing their stuff.  But my feeling is Charged Cotton will be a nice way to expand their target market.  As CEO Kevin Plank explained to Forbes writer Monte Burke (no relation):

“We looked into our customers’ closets and found 30 T-shirts. Four were synthetic, and the other 26 were cotton.” Even though cotton doesn’t perform like synthetic, “there are some people who will still never even consider wearing a synthetic shirt. They like the feel of cotton.  We want those other 26 shirts,” he says.

- http://blogs.forbes.com/monteburke/2011/01/26/in-an-about-face-under-armour-will-introduce-cotton-apparel/

That article's a must-read if you're interested in UA stock.

This cotton line release will probably make no real dent in the earnings report due out April 25.  But I wouldn't be surprised to see yet another earnings-related bump.  This stock has tended to move in big ways on earnings reports, so I will just say I expect that to continue.

Confidence 10 as this stock has always been good to me.