The chart everyone overlooked just touched its floor and bounced

What the system saw

PIII has the strongest relative strength reading we track right now — 100th percentile over the last 63 days. That's not a rounding error. A stock that's been quietly outperforming everything else just tapped its 20-day moving average and bounced. The Relative Strength Engine flagged it this morning with a conviction score of 78.8 out of 100. The entry sits at $10.20, right where the 20dma lives. Price came down, touched support, and started reclaiming. That's the entire setup in one sentence — and it's exactly what this engine was built to find.

Why our Relative Strength Engine liked it

The core idea is straightforward: stocks with elite relative strength tend to treat their 20dma as a trampoline, not a trapdoor. When a name sits in the top decile of the market and pulls back to that moving average without breaking down, the path of least resistance is usually back up. PIII fits that pattern cleanly. It closed its prior session at $10.02, dipped to a low of $10.02 intraday, then reclaimed the 20dma — a move of roughly 1.8% off the low. That reclaim is exactly what the engine is hunting for. One thing worth saying out loud: the fundamentals here are messy. Negative earnings, negative EBITDA, and an Altman Z-Score below zero are real warning signs. Analyst consensus is 'Buy,' but their average target is $9.00 — below our entry. This is a pure price-action, relative-strength trade. The engine isn't making a call on the business. We're watching the chart, not the income statement.

The trade plan

Entry is $10.20. Stop is $8.97, which puts $1.23 at risk per share. The system's 2R target is $12.66. We're putting about $5,090 behind it — 499 shares in the paper account. If price holds above the 20dma and starts moving, there's room to run toward that target without running into obvious overhead resistance. If it breaks back below $8.97, the thesis is done and we're out. Clean and simple.

Position size: our paper account is putting about $5,090 (499 shares) into this trade, sized to risk roughly $614 if our stop is hit. This is what the system committed in its paper account — not a suggestion of how much you should put into any trade.

What could go wrong

The fundamentals are the loudest risk in the room. PIII is burning cash, carries a Piotroski F-Score of 4 out of 9, and has metrics that would make a value investor reach for antacids. Revenue has been choppy — up and then back down across the last three reported periods. EPS losses have been in the $45-to-$47 range. This isn't a quality-business play; it's a momentum and support play, and those can unwind fast when the broader market turns on you. Worth noting: SPY is flat today. No tailwind, no headwind. For a setup like this, that's acceptable — but it means PIII has to do its own heavy lifting from here.

One more thought before we go

We're 21 days into tracking this system live. Win rate is 0-for-4 on closed trades — but SNOW is up 13.5% and CORT is up 22.7% in open positions, so the story isn't fully written yet. PIII is the newest name on the board. Whether it holds that 20dma or hands us another stop-out is the question the next few sessions will answer.