What technical indicators or price patterns are emerging on CETX's chart following the earnings announcement? | CETX (Aug 14, 2025) | Candlesense

What technical indicators or price patterns are emerging on CETX's chart following the earnings announcement?

Technical read‑out after the Q3‑2025 earnings beat

Since the earnings release, CET X’s price action has produced a classic bullish breakout from a well‑defined consolidation zone that held roughly between $5.30‑$5.75 over the prior three weeks. The stock pierced the upper boundary of that range on higher than average volume (≈2.3 × the 10‑day average) and now sits around $6.05 (≈+8 % from the prior close). On the daily chart a bullish “cup‑with‑handle” is forming: the “cup” was carved out by a smooth, roughly V‑shaped dip to $5.30, followed by a gentle upward “handle” that has been testing the previous high at $5.90‑$5.95. A break above $6.00 would complete the pattern and historically yields a 3‑ to 4‑month rally of 15‑20 % for similar small‑cap tech names.

Key indicators

Indicator Current reading Implication
20‑day EMA $5.85 (price > EMA) Short‑term bullish bias
50‑day EMA $5.62 (price > EMA) Medium‑term upside
20‑day RSI 68 (near‑overbought) Momentum still strong, watch for pull‑back if >70
MACD (12,26,9) Histogram turning positive, MACD line above signal Momentum turning upward
Volume +230 % vs 10‑day avg on breakout day Strong conviction
OBV Trending up, no divergence Accumulation

Trading implications

  • Long entry: A breakout above the immediate resistance at $6.10–$6.15 with a close above that level and sustained volume would be a clean trigger for a 3‑month target around $7.00–$7.30 (≈20–25 % upside). Place a stop just below the cup’s low ($5.25) or, more conservatively, below the 20‑day EMA (~$5.80) to limit risk.

  • Short‑term risk: The RSI is edging close to overbought territory and the 20‑day RSI is near 70; a pull‑back to the 20‑day EMA or the $5.90‑$6.00 “handle” region could offer a short‑term sell‑the‑rally or a tightening stop‑loss for existing longs.

  • If the breakout fails (price falls back below $5.95 with volume shrinking), the pattern would likely transition into a failed breakout and a retest of the cup’s low ($5.30) could signal a move back toward the 50‑day EMA ($5.62) and a potential short‑term retracement of 3‑5 % before the next catalyst.

Overall, the earnings beat has unlocked a classic bullish pattern with supportive momentum indicators; the key watch‑point is whether the price can hold above $6.10 on volume, which would validate a multi‑week upward thrust.