PATH - Textbook R/S Flip at Key Fib & MA Support (Bullish Setup)

UiPath (PATH) spent the majority of 2025 range-bound, oscillating between the $10 and $15 marks. This consolidation phase ended dramatically in early October, when the price decisively breached the long-standing 2025 horizontal resistance at approximately $15.

The breakout led to a swift rally, tagging a new year-to-date high of $18.74. Following this strong move, the stock began a healthy retracement, pulling back to test the very level that had previously acted as resistance—the classic Resistance-Turned-Support (R/S Flip) setup.

The Confluence of Support

This current pullback is resting on a powerful confluence of technical supports, significantly increasing the probability of a bullish continuation:

1. Horizontal Support: The previous major resistance line (around $15) now acts as a crucial horizontal support.

2. Moving Average Support: The price is testing the 20-day Simple Moving Average (SMA 20, Green Line). Importantly, this is the first time the price has pulled back to the SMA 20 since the bullish SMA 20/SMA 50 Golden Cross, signaling a strong trend retest.

3. Fibonacci Golden Pocket: The retracement has landed perfectly into the 0.618 Fibonacci Retracement level (from the $12.61 swing low to the $18.74 swing high), a statistically significant reversal zone often called the "Golden Ratio."

Momentum Indicators Confirm Bullish Bias

Beyond the price action, our auxiliary indicators are flashing constructive signals:
* Stochastic: The Stochastic oscillator is reversing from the oversold territory and is showing a clear bullish cross, indicating waning selling pressure and the start of a new upward momentum cycle.
* MACD: The Moving Average Convergence Divergence (MACD) indicator is attempting a bullish cross above the zero line, a powerful sign of increasing positive momentum.

Conclusion

The confluence of price action and indicator signals presents a high-probability bullish setup. The market is currently rewarding the successful test of the R/S flip at the 0.618 Fib and SMA 20 support.

While this setup suggests a strong likelihood for the next leg higher, traders must remember that trading involves probabilities. A clearly defined stop-loss is essential to manage risk should the market invalidate this robust support zone.