The Stock Pulse - Dec. 10, 2025

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The Stock Pulse - 10 Dec 2025 - Three bulls DOCN, HII, and UAL; One bear AZO.pdf Download PDF • 1.77MB

Three bulls: DOCN, HII, and UAL; One bear: AZO

Three bullish stocks: DOCN, HII, and UAL; One bearish stock: AZO

• DigitalOcean (DOCN) is nearing a major base breakout above 52.20 that would confirm a multi-year bottoming pattern and unlock upside toward 63, 76, and 85–90.

• Huntington Ingalls (HII) has broken out of a large early-2024 to late-2025 base and is holding its retest in the 299–285 zone, maintaining a bullish path toward 430.

• United Airlines (UAL) is on breakout watch from an 11-month cup and handle, with a move above 110.66–116.00 opening targets toward 124, 132, 147, and 168 as improving weekly moving averages reinforce the developing handle.

• AutoZone (AZO) is at risk of completing a head-and-shoulders top after a disappointing earnings announcement.

DigitalOcean (DOCN): Big base breakout watch

DOCN is an IT Services stock that is building a big base dating back to mid-2022. A decisive breakout above 52.20 is needed to complete this bottoming pattern and open the door to upside toward 62.94 (38.2% retracement of the late-2021 to late-2023 decline), 76.39 (50% retracement), and 85.00–89.84 (pattern count and 61.8% retracement). Until then, holding the rising 13-week moving average and the recent higher lows from 42.77 to 41.96 would keep the pattern constructive for DOCN.

Huntington Ingalls (HII): Big base breakout and retest with potential to 430

HII, an aerospace and defense stock, broke out and retested the breakout from an early 2024 into late 2025 big base. Holding the 299-285 range (rising 13-week moving average (WMA) and base breakout zone) would maintain the big base breakout with upside potential toward 430. The rising 26-WMA near 280 reinforces this bullish setup.

United Airlines (UAL): On alert for a breakout from a bullish cup and handle

UAL is a passenger airline stock with the potential to break out from an 11-month bullish cup and handle. A decisive rally above 110.66-116.00 (September and January highs) would confirm this positive setup, which is similar to the cup and handle formation on the U.S. Global Jets ETF (JETS) highlighted in this week’s The Sector Edge. A sustained breakout for UAL would target 124 (61.8% extension), 132 (handle count), 147 (100% extension), and 168 (full cup and handle pattern count). Until then, improving 13-, 26-, and 40-week moving averages from 98.92 down to 87.67 and the recent higher low at 88.55 reinforce the developing handle.

Autozone (AZO): At risk to form a H&S top after disappointing earnings

AZO is a specialty retaining stock that is at risk to form the right shoulder of a head and shoulders (H&S) top after a disappointing earnings release on Tuesday (12/9). Any rallies that fail below the potential shoulder highs at 3910-3996 keep this bearish setup intact. The H&S top neckline at 3492-3442 offers key support, which is at risk given a bearish breakdown for AZO relative to the SPX. If the stock breaks down on an absolute basis, it would set the stage for a deeper decline to 3100 (measured move) and 2874 (rising 200-week moving average).

Monitor our “Straight from the Chart” blog for more stock and ETF charts

What is The Stock Pulse?

The Stock Pulse provides bullish and bearish stock and ETF ideas

The Stock Pulse highlights bullish and bearish technical setups across common stocks, ADRs, and ETFs. The report emphasizes weekly charts to reduce short-term noise and targets a three-to-six-month investment horizon. We analyze price action and trends from both an absolute and relative perspective. Our relative benchmark is typically the S&P 500. We focus on the technicals, we but encourage investors to evaluate the fundamentals before acting on the ideas presented in The Stock Pulse.

We can categorize these charts as follows:

• Bullish leadership: Bullish absolute and bullish relative trends. This technical setup represents a confirmed bullish trend. It also can indicate a bullish momentum stock.

  • Actions to consider: Buy dips, hold longs, and avoid shorts. 

• Bearish laggard: Bearish absolute and bearish relative trends. This technical setup represents a confirmed bearish trend. It also can indicate a bearish momentum stock.

  • Actions to consider: Sell rallies, hold shorts, and avoid longs.

• Bullish weakening: A bullish absolute trend and a deteriorating to bearish relative trend. The stock has rallied but lags its benchmark. This lack of bullish relative confirmation provides a negative divergence, which is a potential bearish leading indicator for the absolute price chart.

  • Actions to consider: Protect or reduce absolute longs, consider relative shorts, and if aggressive, initialize an absolute short.

• Bearish strengthening: A bearish absolute trend and an improving to bullish relative trend. The stock has declined, but it has dropped less than its benchmark. This lack of bearish relative confirmation provides a positive divergence, which is a potential bullish leading indicator for the absolute price chart.

  • Actions to consider: Protect or reduce absolute shorts, consider relative longs, and if aggressive, initialize an absolute long.

Key indicators

We rely weekly charts – both absolute and relative – with simple weekly moving averages (WMA) and Trend Scores to assess the technical condition of the stocks, ADRs, and ETFS highlighted in this note. In addition, we may also highlight other important indicators and well as provide technical screens.

Weekly moving averages show multiple timeframes on one chart

• The slope of the moving average is more important than whether the price is above or below it

• 13-WMA: Quarterly and tactical trend

• 26-WMA: Half-year and intermediate trend

• 40-WMA: Longer-term trend and similar to the 200-day moving average

• 200-WMA: Long-term or macro trend

Trend Scores

• Trend Score: Ranges from -10 to +10 and incorporates the 13-, 26-, and 40-WMAs. Higher scores indicate stronger trends with prices above rising WMAs. Lower scores indicate weaker trends with price below declining WMAs. Longer WMAs are more heavily weighted.

• Long-term Trend Score: Ranges from -20 to +20 and includes the 13-, 26-, 40-, and 200-WMAs. Higher scores reflect stronger long-term uptrends, while lower scores indicate long-term downtrends. Longer WMAs carry more weight.

Three bullish charts: DOCN, HII, and UAL

DigitalOcean (DOCN): Big base breakout watch

DOCN is an IT Services stock that is building a big base dating back to mid-2022. A decisive breakout above 52.20 is needed to complete this bottoming pattern and open the door to upside toward 62.94 (38.2% retracement of the late-2021 to late-2023 decline), 76.39 (50% retracement), and 85.00–89.84 (pattern count and 61.8% retracement). Until then, holding the rising 13-week moving average and the recent higher lows from 42.77 to 41.96 would keep the pattern constructive for DOCN.

Chart notes:

• DOCN has shown relative strength versus the S&P 500 (SPX) since early August, but additional follow-through above 2025–2024 relative resistance and the declining 200-week moving average would help signal a more durable shift to leadership.

Chart 1: DigitalOcean Holdings Inc. (DOCN) (top) and relative to the S&P 500 (bottom)

Source: Optuma, Suttmeier Technical Strategies

Huntington Ingalls (HII): Big base breakout and retest with potential to 430

HII, an aerospace and defense stock, broke out and retested the breakout from an early 2024 into late 2025 big base. Holding the 299-285 range (rising 13-week moving average (WMA) and base breakout zone) would maintain the big base breakout with upside potential toward 430. The rising 26-WMA near 280 reinforces this bullish setup.

Chart notes:

• HII has shown leadership relative to the SPX since mid February. Regaining the 200-WMA vs. the SPX is the next step to continue this leadership trend.

Chart 2: Huntington Ingalls Industries Inc. (HII) (top) and relative to the S&P 500 (bottom)

Source: Optuma, Suttmeier Technical Strategies

United Airlines (UAL): On alert for a breakout from a bullish cup and handle

UAL is a passenger airline stock with the potential to break out from an 11-month bullish cup and handle. A decisive rally above 110.66-116.00 (September and January highs) would confirm this positive setup, which is similar to the cup and handle formation on the U.S. Global Jets ETF (JETS) highlighted in this week’s The Sector Edge. A sustained breakout for UAL would target 124 (61.8% extension), 132 (handle count), 147 (100% extension), and 168 (full cup and handle pattern count). Until then, improving 13-, 26-, and 40-week moving averages from 98.92 down to 87.67 and the recent lower high at 88.55 reinforce the developing handle.

Chart notes:

• UAL has maintained its leadership from its April 2025 and August 2024 lows relative to the SPX. Holding the improving 13-, 26-, and 40-week moving averages versus the SPX would keep this leadership trend firmly in place.

Chart 3: United Airlines Holdings Inc. (UAL) (top) and relative to the S&P 500 (bottom)

Source: Optuma, Suttmeier Technical Strategies

One bearish stock chart: AZO

Autozone (AZO): At risk to form a H&S top after disappointing earnings

AZO is a specialty retaining stock that is at risk to form the right shoulder of a head and shoulders (H&S) top after a disappointing earnings release on Tuesday (12/9). Any rallies that fail below the potential shoulder highs at 3910-3996 keep this bearish setup intact. The H&S top neckline at 3492-3442 offers key support, which is at risk given a bearish breakdown for AZO relative to the SPX. If the stock breaks down on an absolute basis, it would set the stage for a deeper decline to 3100 (measured move) and 2874 (rising 200-week moving average).

Chart notes:

• The broken 13-, 26-, and 40-week moving averages from 3837 to 3920 align with the potential shoulder peaks at 3910-3996, reinforcing those chart levels as resistance within a developing H&S top pattern.

Chart 4: Autozone Inc. (AZO) and relative to the S&P 500 (bottom)

Source: Optuma, Suttmeier Technical Strategies

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