KLIC Stage 2 Uptrend Intact but Deep Base Flags Elevated Risk

Posted on by Eben@CANSLIM Research
KLIC daily stock chart with 10, 20, 50, 150 and 200-day moving averages, volume and RS line versus SPY — CANSLIM Research

Kulicke and Soffa (KLIC) is holding a Stage 2 advance above a rising 30-week moving average, yet the current base shows a deep 38% correction, which historically carries a higher failure rate. The trend template passes five of eight checks, with price below the 50-day MA and off 25.9% from highs, while volume has not dried up enough to confirm a VCP. Overall sentiment is neutral, suggesting traders should wait for a clearer breakout or volume contraction before acting.

As of 2026-08-14 · Close $99.09

Stage 2 (Advancing) — Price holding above a rising 30-week MA — uptrend intact (30-week MA 6-week slope: 9.4%)

⚠️ Faulty cup warning: the base is 38.1% deep (above the 38–40% threshold). A correction this deep leaves heavy overhead supply — trapped holders from higher prices are likely to sell into any rally, raising the failure rate of a breakout from this base.

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