Duos Technologies’ 280 % Q2 jump is principally a base‑effect story – the company moved from a modest $2 M‑plus quarter to roughly $7 M of revenue, driven by two high‑growth tails: long‑term energy‑services contracts (grid‑balancing, renewable‑asset monitoring) and an expanding edge‑computing platform that is being rolled out with several Tier‑1 telecom partners. Those contracts are multi‑year and priced on usage, so the upside in Q3 is not a one‑off spike, but the growth rate will inevitably taper as the low‑base denominator normalises and the rollout pace aligns with capital‑expenditure cycles in utilities and telecoms. The $28 M–$30 M full‑year guidance already embeds a more moderate ~35 % YoY increase after Q2, implying the market expects roughly 30‑40 % growth in Q3/Q4 rather than another 200 % surge.
From a technical standpoint, DUOT is trading above its 20‑day and 50‑day EMAs with RSI hovering near 65, indicating bullish momentum but also a modest overbought bias. Volume on the earnings breakout was 2‑3× the 10‑day average, suggesting strong conviction, but the price has now retested the 20‑day EMA – a classic pull‑back entry point for momentum traders. A prudent play would be a “buy‑the‑dip” if the stock stalls near the 20‑day EMA with the market still pricing in the full‑year guidance; set a stop just below the 20‑day EMA (≈ 5‑6 % below current levels) and target the $28 M–$30 M revenue ceiling, which translates to a roughly 15‑20 % upside from today’s price. Conversely, watch for any forward‑guidance downgrade or a slowdown in contract wins; a break below the 20‑day EMA on declining volume could signal that the Q3 growth tail is fizzling, prompting a defensive exit.