💰 Entry: $41 - 42
🛑 Stop: $39.50
🎯 Target: $44.80+ (1.5–2R potential)
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🧠 Setup Thesis
CPU.ASX is breaking out of a textbook Volatility Contraction Pattern (VCP) with clean tightening just above the 21EMA and 50MA. After weeks of base-building with declining volume, today’s breakout comes with:
✅ Strong closing candle
✅ Volume expansion
✅ All key MAs supporting the move
This breakout follows a multi-month uptrend, and the current risk:reward is ideal with defined structure.
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🔍 Trade Management
• Trim 1/3 at +1R (~$43.40)
• Trail remainder above breakeven
• Invalidation: Close below $39.50
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🔎 Why This Matters
• Breakouts with strong volume post-VCP are among the highest probability setups
• CPU has strong institutional backing and is benefiting from a broader rally in quality tech & services on the ASX
• Low VIX and bullish sentiment post-CPI create a supportive macro backdrop
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.