Stage 2 Breakout Buy in U
Unity is a gaming company that fits perfectly into the AI theme we are seeing lead this market.
I have marked up a weekly chart of the stock to show how it has progressed through the 4 stages of the stock cycle.
After chopping around the $20-$40 range for the better part of a year, U is trying to break out into a new Stage 2 uptrend.
Price action has tightened and the moving averages are now supporting the stock near its 52-week highs.
Also note the heavy buying volume that has come into the stock over the last several weeks. This is something we often see before a stock begins a quick move higher and is indicative of institutions absorbing supply and building a line in the stock.
The stock popped higher on Thursday morning before pulling back Friday with the rest of the market. Investors should consider buying here with a 10-15% stop loss.
I have marked up a weekly chart of the stock to show how it has progressed through the 4 stages of the stock cycle.
After chopping around the $20-$40 range for the better part of a year, U is trying to break out into a new Stage 2 uptrend.
Price action has tightened and the moving averages are now supporting the stock near its 52-week highs.
Also note the heavy buying volume that has come into the stock over the last several weeks. This is something we often see before a stock begins a quick move higher and is indicative of institutions absorbing supply and building a line in the stock.
The stock popped higher on Thursday morning before pulling back Friday with the rest of the market. Investors should consider buying here with a 10-15% stop loss.
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