Key Technical Takeaways
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Shakeout and Slingshot Pattern ($PUBM): After resting sideways for roughly three months following August earnings, $PUBM broke below its 50-day moving average on October 30th—shaking out weak hands on heavy volume—before rapidly reclaiming the moving average, retesting the low, and slingshotting to its highest level since 2024.
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High-Volume Breakout Confirmation ($PUBM):$PUBM cleared the $19.00 resistance level on more than twice its average daily volume, accompanied by a TTM Squeeze indicator shifting into positive upside momentum.
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Earnings Growth Acceleration ($PUBM): Fundamental projections show $PUBM recovering from a 31-cent loss in 2025 to an estimated 7-cent gain in 2026, followed by a projected 335% earnings increase to 31 cents in 2027, aligning with an uptrending weekly earnings line.
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NVIDIA ($NVDA) Event Positioning: The recent sharp drop and rebound in $NVDA suggests the CEO’s exit is priced in and a bottom may be forming ahead of next Wednesday’s earnings release.
Professional Strategy Blog
Post-Shakeout Breakouts: Framing the Slingshot Setup in PubMatic ($PUBM)
In a choppy market tape where clean setups are scarce, identifying stocks that shake out weak-handed holders before reversing to new highs provides a high-probability technical edge. When an equity violates a key moving average, flushes out sellers, and quickly reclaims support on expanding volume, the resulting “slingshot” move often signals strong institutional accumulation.
As technician Dan Fitzpatrick details, PubMatic, Inc. (Ticker: PUBM) is displaying a textbook post-shakeout breakout, pushing to its highest level since 2024 while flashing positive momentum across daily and weekly timeframes.
| Technical / Fundamental Parameter | Metric / Price Level | Strategic Context |
| Consolidation Base | ~3-month sideways drift post-August earnings | Constructive rest period before trend expansion |
| Shakeout Event | October 30th drop below 50-day SMA | Flushed out weak hands on 2x average volume |
| Breakout Pivot | Cleared $19.00 on >2x average volume | Surpassed prior earnings pop; highest since 2024 |
| Momentum Indicator | TTM Squeeze turning positive | Confirms upside momentum after downtrend shift |
| Target Pullback Entry | Retest near $19.00 or $20.00 | Wait for price to firm up after 8.36% single-day run |
| Earnings Trajectory | 2026 est. $0.07 → 2027 est. $0.31 (+335%) | Aligns with rising weekly earnings line |
Anatomy of the $PUBM Shakeout and Slingshot
Following its August earnings report, $PUBM drifted sideways for approximately three months along its 20-day and 50-day moving averages. On October 30th, the stock broke down beneath its 50-day moving average on heavy volume, triggering stops and shaking out short-term holders.
Rather than entering a sustained downtrend, buyers stepped in aggressively:
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Reclaiming the 50-Day Moving Average: Price quickly recovered back above the 50-day moving average and successfully retested the shakeout zone.
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Volume-Backed Breakout: $PUBM surged 8.36% to clear the $19.00 resistance level on more than double its average daily volume, surpassing its prior post-earnings high.
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Momentum Alignment: The TTM Squeeze momentum indicator shifted from negative to positive, confirming that buyers have regained structural control.
Tactical Execution and Upcoming $NVDA Event
Because $PUBM just posted an 8.36% single-day advance, chasing extended momentum introduces immediate pullback risk. Dan Fitzpatrick advises watching the stock over the next couple of sessions for a controlled dip toward $19.00 or $20.00, stepping in once price action stabilizes and firms up.
Additionally, traders should prepare for next Wednesday’s major market catalyst: NVIDIA ($NVDA) earnings. With the CEO’s resignation seemingly priced in following a sharp drop and rebound, Dan Fitzpatrick is hosting a live 59-minute trading session on Wednesday morning at the market open to navigate post-earnings volatility in real time.