BUY IDEA: CPU.ASX – VCP Breakout in Motion

💰 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


DISCLAIMER : The content and materials featured are for your information and education only and are not attended to address your particular personal requirements. The information does not constitute financial advice or recommendation and should not be considered as such. Risk Management is Your Shield! Always prioritise risk management. It’s your best defence against losses.