SWIM: Bullish Engulfing detected on 1 May 2026

SWIM has formed a bullish engulfing pattern at 6.07 with strong technical structure (15/15). The setup shows excellent breakout quality (8/13) aided by above-average volume at 487,757 shares (1.04x relative volume). Support anchors at 5.04 while resistance sits at 6.58. The pattern quality score of 81 reflects mounting positive price action: the stock gained 13% in one month while RSI at 54.6 remains neutral territory, avoiding overbought conditions. Industrials sector shows bullish regime (0.89 score), providing tailwind.

Latham guided for 2026 net sales of $580–$610M and adjusted EBITDA of $105–$120M, indicating continued growth. 2025 net sales were $545.9 million with net income of $11.1 million and Adjusted EBITDA of $99.8 million, with net sales up 7.4% and gross margin improving 320 basis points. Fiberglass pools represented 76.5% of in-ground pool sales, supported by strong growth in "Sand States" like Florida. The stock recently beat earnings estimates in March; however, Q1 2026 results are scheduled for May 5, 2026 after market close — just four days after this pattern detection date, creating near-term volatility risk.

A successful breakout above 6.58 resistance would target the conservative measure of 6.46, though the pattern suggests potential upside to recent resistance levels if volume sustains above 470k shares. The 60.65% win probability indicates moderate confidence. Invalidation occurs below 5.04 support, which would signal pattern failure. Volume confirmation is already present (1.04 ratio), supporting the engulfing structure. The measured move from pattern base suggests limited upside to 6.75–7.00 if breakout holds.

Q1 2026 earnings release on May 5, 2026 represents immediate volatility risk just days away—results could gap stock either direction. Stock trades 32% below 52-week highs despite recent gains, suggesting earlier weakness. Latham's 6.2% annualized revenue growth over five years was weak, below consumer discretionary sector standards. Beta of 1.29 indicates 29% higher volatility than market; 20-day volatility at 55.67% is elevated. The stock has declined 5% over three months despite the 13% one-month gain, showing recent reversal. No insider buying or analyst upgrade signals found; monitor for post-earnings gap down risk.

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.