POV: ULTRACEMCO - Edge of Channel Breakout

POV: ULTRACEMCO - Edge of Channel Breakout


1️⃣ Channel Formation:
The stock has been trading in a range of ~12–14%, forming a channel. The top of the channel has been tested 4 times, confirming it as a strong resistance zone.

2️⃣ Last Leg Setup:
The last leg started with:
- A double bottom pattern.
- Divergence indicating reversal.
- A bounce back after taking support at the 200 SMA.

3️⃣ Consolidation:
After reaching the top of the channel, the stock is consolidating instead of pulling back—a positive sign for a potential breakout.

4️⃣ Flag Pattern:
The 5-day consolidation appears to be forming a **flag pattern**, adding to the bullish sentiment.

5️⃣ Concerns:
- Volume is around the average, lacking the confirmation of a spike.
- Entry is set slightly above for safety due to range expansion, which is nearly 100 points away.

Disclaimer:
For educational purposes only, not financial advice.

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