Trade Setup: FPS
Setup
Forgent Power Solutions, Inc. (FPS) was identified using our custom Double Bottom screener, which flags a second test of a prior low that holds. The pattern is a reversal signal: it is betting that sellers who were in control at the first low are no longer in control at the second. The trade will be exited on the trend rather than at fixed targets.
Entry
We entered FPS on September 16, 2026 at $35.28.
Stop
No fixed stop price is set on this position. The exit rule is a dynamic stop that trails the trade while the trend holds, so the market sets the exit rather than a level chosen in advance.
Targets
No fixed price targets are set. We will let the trend determine the exit.
Risk / Reward
Risk is managed by the trailing stop rather than a fixed distance from entry, so there is no initial risk percentage to quote. That buys room for the reversal to develop without being shaken out on a retest, and it costs us a loss whose size is known before the trade starts - a real trade-off on a pattern that comes with an obvious invalidation level built in.
Trigger
The entry was triggered by the second low holding above the first rather than breaking it, which is the condition the screen is built to catch.
Invalidation
A break of the trend structure invalidates the setup - specifically, a decisive move back below the second low, which would mean the pattern failed rather than formed. Exit the position when the trailing stop is violated.
Status
Open.
Trade Plan
No trim levels are set in advance. The stop trails the position while the trend holds, and tightens as the trade develops.
What We're Watching
Confirmation is the recovery holding and extending away from the second low. The thesis breaks if price returns to test that low again - a third test is not a stronger base, it is a pattern that is not working.
Disclosure
TradeCompa holds a position in FPS at publication.
Disclaimer
This is not investment advice. Trading involves risk, and losses can exceed expectations. Always use your own research, risk management, and judgment before entering a position.