In our original setup article, SPX Technologies (SPXC) was tightening beneath a well-defined resistance zone in the mid-$220s, with a bullish weekly trend and improving fundamentals.
Since then, the stock has confirmed the breakout and is now trading around $241.60, after printing an intraday high near $244 on the latest session. That’s a meaningful follow-through move above the prior ceiling (and also above the ~$233–$234 “line in the sand” level many traders had on their radar).
So the question becomes: how do we manage it now that it’s working?
1) Recognize the new situation: strength + extension
At $241.60, SPXC is:
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Clearly above the former resistance zone (bullish)
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Extended above short-term moving averages (the chart above shows the 9 EMA around $230 and the 21 EMA around $223)
When a breakout gets extended quickly, the probabilities shift from “entry timing” to risk management and profit protection. Strong stocks can stay extended, but they also love to shake out late chasers with a quick dip back toward the 9/21 EMA.
2) The #1 management rule here: raise the stop
There isn’t one “correct” stop, there are two common approaches depending on how tightly you want to manage.
Option A — Tight Breakeven Stop (aggressive)
You could consider placing the stop loss at breakeven ($229.11), but the chance of being stopped out if the breakout level is tested is quite significant.
Option B — Wider Trend Stop (defensive)
If you want to take full advantage of a potentially larger bullish trend movement while still reducing a significant portion of your risk, consider raising the stop loss to just below the rising EMA21 (~$222.44).
That brings the initial risk from 1% to just 0.44%.
3) Consider taking partial profits into strength
SPXC has already delivered a clean breakout and is now meaningfully above the breakout area. This is a classic spot to sell a portion (e.g., 1/3) into strength and let the rest ride with a trailing stop.
Why partials help here:
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You reduce emotional pressure
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You can tolerate a pullback without panicking
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You keep exposure if it turns into a bigger trend leg4)
4) Watch the next “decision levels” on the chart
From the updated chart, here are the levels that matter most right now:
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$244 area (recent high): a breakout above this could trigger another momentum push.
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$230–$233 zone (former resistance): the “must-hold” area for a healthy breakout.
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~$230 (9 EMA): short-term trend support; losing it often leads to a test of the 21 EMA.
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~$223 (21 EMA): a deeper pullback level that can still be normal in a strong uptrend.
Earnings risk is close - plan it, don’t wing it
The original post flagged earnings around Feb 24 (after market close).
That matters a lot now that the position is in profit.
Two clean approaches:
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Reduce risk ahead of earnings: take partial profits and/or tighten the stop on the remainder.
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Hold through earnings intentionally: keep a wider stop (below the breakout zone), accept gap risk, and size accordingly.
If this is a swing trade rather than a long-term hold, many traders prefer not to carry a full-sized position into earnings unless they’re already sitting on a cushion.
Conclusion
SPXC did exactly what we wanted, it broke out and followed through.
At this stage, the main thing is to reduce risk while keeping a close eye on the stock price.
Set an alarm in your calendar for February 23 and then, based on the chart, decide whether to keep all, some, or none of your shares in your portfolio when the quarterly results are announced on February 24.
Trade safe!
Kristoff - ChartMill