Question on USLM

We got a blog question from Scott regarding the chart for United States Lime and Minerals (USLM).

USLM, a small cap construction materials stock, completed a February–August bottoming pattern, which is also confirmed by a similar bottom relative to the S&P 500. This alignment suggests a bullish outlook for USLM.

Last week, USLM encountered resistance at the 61.8% retracement of the November 2024–April 2025 decline near 129. Despite this stall, the 6-month bottom breakout remains intact above the 111–107 zone, which aligns with the 38.2% retracement, the 40-week moving average, and the original breakout point. Holding above or near this support zone keeps this bottom pattern intact and points to an initial upside target near 136.

Moreover, if USLM can reclaim and sustain levels above the 61.8% retracement, there is potential for a further retracement toward last year’s high around 159.