MBC: Post Collapse Recovery detected on 25 Aug 2026
All prices, scores, and news on this page reflect data available before market open on .
Browse all Post Collapse Recovery detections →On 25 Aug 2026, our scan flagged MBC as a post collapse recovery setup scoring 73 out of 98 (Good tier), with a 70% win probability based on our historical pattern database and a 1.2 to 1 reward to risk ratio. This is a swing trade setup: win probability reflects a 10 trading day hold, not an intraday move. At $9.32, the conservative target is $9.79 with a stop at $8.75. A further breakout above resistance near $10.36 offers a larger move if momentum continues past the initial target.
Overall Score
73
of 98
Good
Win Probability
70%
Moderate
Reward / Risk
1.2
: 1
$0.14 reward
$-0.12 risk
Swing Trading Plan
Entry
$9.32
Target
$9.79
Stop Loss
$8.75
Holding Period
Up to 10 trading days
Win Probability
70%
Current Setup
MasterBrand is forming a post-collapse recovery pattern following completion of its American Woodmark merger, creating a comprehensive cabinet brand portfolio. The stock currently sits at $9.32, nestled between key support at $7.96 and resistance at $10.36—just 1.1% below resistance. Structure score of 12.43/15 signals solid pattern architecture, with volume (12.0/12) and breakout (11.56/13) components confirming formation quality. The ascending triangle and higher-lows-with-volume-spike patterns detected on 7/27 and 7/13 add confluence. With an overall quality score of 72.99/98 and 69.5% win probability, this recovery attempt shows measurable technical merit.
Stock Context
MasterBrand announced Q2 2026 earnings on August 4, 2026. Revenue reached $815.2 million, up 11.5% year-over-year and above the analyst estimate of $750.5 million, but profitability weakened sharply. The combined cabinet maker carries approximately $1.15 billion of net debt and is promising future cost savings while current margins remain under strain. Management exceeded original cost synergy targets, now expecting over $100 million in annual run-rate cost synergies by end of year three post-close, with $30 million already executed. Insider activity shows 4 purchases and 2 sales by company insiders over the past six months. This merger integration narrative—combining scale with margin recovery—explains why the stock is attempting recovery from $6.61 lows despite recent margin compression.
What to Expect
A successful breakout above resistance at $10.36 would target the conservative measured move of $9.79, with potential extension toward prior recovery highs near $11-12. Historical data suggests a 69.5% probability of upside success. Volume confirmation is essential—the current relative volume of 0.67 (67% of 20-day average) is below normal, so breakout must be accompanied by volume expansion above the 1.87M 20-day average. Invalidation occurs decisively below support at $7.96, which would signal failure of the recovery thesis and potential continuation toward $6-6.61 lows.
Risk Factors
The margin collapse presents significant headwind: adjusted EBITDA margin compressed to 7.7% versus legacy MasterBrand's prior 8.4%, and legacy sales declined 5.6% in a weaker cabinet market. Net leverage sits at 3.9x on a trailing basis versus a target below 2.0x by 2028, highlighting significant balance sheet work required. Beta of 1.56 signals elevated volatility relative to the market. Elevated RSI at 54.72 is neutral but not overbought. Critically, volume is running at only 67% of average, raising concern about breakout conviction. Next earnings follow-up is estimated for November 3, 2026—over 70 days away, leaving pattern to depend on sentiment momentum and synergy narrative execution without near-term catalyst confirmation.
Sources:
MasterBrand Inc (MBC) (Q2 2026) Earnings Call Highlights: Merger Integration Drives Synergy ...
·
MasterBrand, Inc. (MBC) Stock Price, News, Quote & History - Yahoo Finance
·
MasterBrand (MBC) Stock Revenue Growth Collides With Margin Compression - Simply Wall St News
·
MasterBrand Q2 2026 Earnings Call Transcript
·
MasterBrand, Inc. Common Stock (MBC) Earnings Report Dates & Earnings Forecasts | Nasdaq
·
MasterBrand (MBC) Releases Q2 2026 Earnings: Revenue Growth but Deeper Loss | MBC Stock News
·
Masterbrand Inc (MBC) Stock News Today | TradingKey
·
www.tipranks.com
·
jpmorgan chase co boosts stock holdings in masterbrand inc nysembc 2025 04 15
How We Find and Score This Setup
We scan more than 6,000 NYSE and NASDAQ stocks every trading day and compare each detected pattern against a database of 370,000+ historical detections. Every setup is scored across three dimensions: Structure, Volume, and Breakout Readiness. Win probability is a calibrated estimate of how similar historical setups performed over the following 10 trading days. This is a swing trading tool built for multi-day holds. It is not built or tested for day trading.
Frequently Asked Questions
Is MBC a good swing trade?
MBC scored 73 out of 98 on our post collapse recovery scan, with a 70% historical win probability over the standard 10 trading day hold. Good setup based on our systematic scoring.
What is the entry, target, and stop loss for this setup?
The setup's reference price is $9.32, with a conservative target of $9.79 and a stop loss at $8.75.
What would invalidate this post collapse recovery setup?
A close below the stop loss at $8.75 would invalidate the setup and suggest the pattern has failed.
How is the win probability calculated?
Win probability is a calibrated estimate of how similar historical post collapse recovery setups performed over the following 10 trading days, drawn from a database of 370,000+ historical pattern detections across 6,000+ NYSE and NASDAQ stocks.
Market & Sector Regime
Market
Bullish
0.60
-1.0
0
+1.0
Consumer Discretionary Sector
Bullish
0.69
-1.0
0
+1.0
Other Patterns Detected Today
Ascending Triangle
20 days in pattern
Good
32.0
Higher Lows Volume Spike
30 days in pattern
Good
31.6
Overall Score
36
of 40
Pattern Quality
18
of 20
Setup
13
of 20
R/R
6
of 18
Context
Pattern Quality Score
12
of 15
Structure
12
of 13
Breakout
12
of 12
Volume
Recent Performance
Momentum & Trend
RSI (14)
54.7
Neutral
MACD Histogram
+0.02
Bullish
Bollinger Band Position
70.5%
Upper Zone
Volatility & Risk
20-Day Volatility
0.60
Very High
ATR %
4.4%
Medium
Beta
1.56
High Beta
Volume Analysis
Volume Ratio
0.67x
Below Avg
20-Day Avg Vol
1.9M
shares / day
Current Volume
1.2M
shares traded
Price Levels
52W High
$14.22
Resistance
$10.36
Target
$9.79
Current
$9.32
Stop Loss
$8.75
Support
$7.96
52W Low
$6.60
Disclaimer: This analysis is algorithmically generated for educational purposes only and does not constitute financial advice. Past pattern performance does not guarantee future results. Win probabilities are based on historical data across 370,000+ observations. Always conduct your own research and consult a qualified financial advisor. AI-assisted contextual analysis by Claude (Anthropic). Indicators reflect values at time of detection.