$DEWA (VCP - 6W 19/6 3T)Position update: July 21, 2025.
Key factors:
1. Confirmed stage 2 uptrend.
2. A textbook Volatility Contraction Pattern (VCP) with a clearly defined, low-risk entry point.
3.Currently forming a VCP following a prior price surge of nearly 150%, demonstrating strong momentum.
4. The stock moves on its own drummer, rallying close to 150% while the broader market advanced just 23%.
5. Displays high relative strength, outperforming sector and index benchmarks.
6. Volume has dried up, indicating less supply coming to the market.
7. Significant volume expansion on the breakout.
Considerations: Despite a favorable technical setup, risk should be managed diligently given the stock's sharp ascent and potential for profit-taking. Establishing stop-loss levels and monitoring market conditions is essential.
This is another quintessential VCP breakout with a clear pivot entry and minimal risk. I’m starting to see increased traction in the market now—a very positive sign to scale up trading size.
