OUST Stage 2 Uptrend Intact but Deep Base Pattern Raises Risk

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

OUST is trading at $48.71, holding above a rising 30-week moving average within a Stage 2 advance, with 7 of 8 trend-template checks passing. However, the market is focused on a faulty deep-base pattern — a 49.9% decline over seven weeks with no confirmed breakout — which historically carries an elevated failure rate. Sentiment is constructive but cautious, as the stock awaits a decisive move above the $62.52 pivot to validate the setup.

As of 2026-08-14 · Close $48.71

Stage 2 (Advancing) — Price holding above a rising 30-week MA — uptrend intact (30-week MA 6-week slope: 9.5%)

⚠️ Faulty cup warning: the base is 49.9% 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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