Fundamental outlook – Duos Technologies (DUOT) posted a 280 % jump in Q2 revenue, with edge‑computing services cited as a primary driver. The rapid scaling of edge workloads—particularly in energy‑grid monitoring, industrial IoT and 5G back‑haul—creates a natural incentive for the company to lock in long‑term contracts with telecom carriers, utility operators and cloud‑infrastructure providers. Management’s guidance of $28‑$30 M full‑year revenue, combined with an 80 % sentiment score, suggests that investors already price a substantial partnership pipeline. Look for upcoming press releases or conference‑call hints about multi‑year deals with firms such as AWS, Azure, or regional utility consortia; those announcements would serve as catalysts that could push the stock toward the upper end of its FY target range.
Technical & trading implications – On the chart, DUOT is trading near the high of its 6‑month range, with the 20‑day EMA crossing above the 50‑day EMA and RSI hovering around 65. The breakout coincides with the earnings beat, confirming bullish momentum. A prudent strategy is to add to positions on a pull‑back to the 20‑day EMA (~$0.45, assuming current price ~ $0.48) with a stop just below the 50‑day EMA (~$0.42). Given the potential for partnership announcements in the next 4‑6 weeks, a short‑to‑mid‑term upside to $0.55–$0.60 is realistic. Conversely, if the stock fails to sustain above the 20‑day EMA, a move below the 50‑day EMA could indicate a re‑test of the $0.38 support level, warranting a partial exit. In summary, the edge‑computing growth is likely to translate into new strategic alliances and market expansion, making DUOT a high‑conviction buy‑the‑dip with a tight risk envelope.