UTI trade ideas
$UTI forming 3 months #rectangle #consolidation #ChartPattern NYSE:UTI has been moving sideways for 3 months forming a well defined rectangle chart pattern. The stock has tested the $7.75 price level 5 times in the last few weeks. A break and daily close above that level sets the stock for a run to its chart pattern price target around $9.50, a 21% price increase from breakout level. Earnings coming up in 2 days. Add this stock to your watch list and look for long entry on breakout post earnings.
Breakout in UTIUniversal Technical Institute, Inc. engages in the provision of postsecondary education. It operates through the Postsecondary Education and Other segments. The Postsecondary Education segment offers technical training for students seeking careers as professional automotive, diesel, collision repair, motorcycle and marine technicians as well as welders and CNC machining technicians. The Other segment provides manufacturer-specific training and these operations are managed separately from campus operations. The company was founded by Robert I. Sweet in 1965 and is headquartered in Scottsdale, AZ.
UTI earnings trade, High Risk, High reward Entry level pre earnings preferably on break above resistance @ $ 6.09.
Target price at Fibonacci expansion level 1.414 @ $ 7.80.
This is a possible breakout play from a multiyear basing pattern.
A break to the upside could be explosive as could a drop.
High risk high rewards.
Company profile
Universal Technical Institute, Inc. engages in the provision of postsecondary education. It operates through the Postsecondary Education and Other segments. The Postsecondary Education segment offers technical training for students seeking careers as professional automotive, diesel, collision repair, motorcycle and marine technicians as well as welders and CNC machining technicians. The Other segment provides manufacturer-specific training and these operations are managed separately from campus operations. The company was founded by Robert I. Sweet in 1965 and is headquartered in Scottsdale, AZ.
Seeking alpha article
We've tracked UTI closely for years, anticipating it would benefit enormously once the cycle turned.
The stock has traded along all-time lows for the past 5 years, largely because it has struggled operationally as its core business is counter-cyclical.
UTI is a prime beneficiary of previous governmental regulations, as they now have minimal competition.
Trading at 8x 2019 EBITDA, with a business model that has tremendous operating leverage, we think UTI will generate its current market cap in cash in 5 years as student enrollments are set to erupt higher.