HLIT Stage 2 Uptrend Intact but Deep 38% Base Signals Caution

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

HLIT is holding above a rising 30-week moving average, confirming a Stage 2 advancing trend with 7 of 8 trend-template checks passed. However, the current base is a deep 38% correction over 11 weeks, which historically carries an elevated failure rate. The market is focused on whether the stock can break above the 17.11 pivot, as sentiment remains constructive but awaits confirmation.

As of 2026-08-14 · Close $13.92

Stage 2 (Advancing) — Price holding above a rising 30-week MA — uptrend intact (30-week MA 6-week slope: 3.2%)

⚠️ Faulty cup warning: the base is 38.0% 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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