TSSI: Rounding Bottom detected on 2 Apr 2026

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Overall Score
75 of 100
Good
Win Probability
65%
Moderate
Reward / Risk
0.2 : 1
$0.10 reward $-0.41 risk
Current Setup
TSS Inc. is a data center services company centered on AI and high-performance computing (HPC) infrastructure and software integration. The rounding bottom pattern is forming at $13.95, with a structure score of 15.0 and solid breakout strength (13.0). Key support holds at $6.87 while resistance targets $22.12. The pattern has accumulated solid volume confirmation (12.0 score), and the overall 75-point score on a 98-point scale reflects a high-quality technical setup. RSI at 65.84 shows momentum without overbought extremes. The post-collapse recovery pattern detected 62 days ago suggests multi-week consolidation before this breakout.
Stock Context
TSS reported full-year 2025 revenue of $245.7 million, up 66%, and diluted EPS of $0.56, up from $0.24. Fourth-quarter revenue was $60.9 million, up 22%, with systems integration revenue rising 79% year-over-year. The company amended a long-term AI rack integration agreement and provided 2026 guidance of $20–$22M Adjusted EBITDA. Systems integration rack volumes at the Georgetown facility came online mid-year and ramped in Q4, positioning the company for solid growth in 2026. However, SVP Kieran Brennan sold 12,000 shares at a weighted average price of $12.27 per share, signaling some insider distribution near current levels.
What to Expect
The rounding bottom breakout would likely trigger on volume near $22.12 resistance, with a conservative measured move target of $14.88 providing near-term upside. TSS nearly doubled 2025 revenue to $245.72 million and lifted diluted EPS to $0.56, providing fundamental support for the technical advance. Invalidation occurs decisively below $6.87 key support. Win probability of 64.77% suggests better-than-even odds, but volume ratio at 0.82 indicates below-average participation—volume confirmation on breakout above $22.12 will be critical to sustain momentum.
Risk Factors
Component supply constraints and memory price volatility could limit completed rack deliveries in 2026, with forecasts taking a conservative view on component availability despite demand exceeding imputed volumes. Beta of 2.07 signals elevated volatility—nearly 2x the market—amplifying drawdown risk. TSS's reliance on a single primary OEM customer for much of its systems integration volume presents concentration risk. Recent insider selling and earnings forecast to decline by an average of 25.4% per year for the next 3 years create headwinds, though this conflicts with 2026 guidance. Broader market regime is bearish (-0.4 score); Consumer Discretionary sector is also bearish (-0.33 score)—this pattern forms against structural headwinds.
Market & Sector Regime
Market
Bearish -0.40
-1.0 0 +1.0
Consumer Discretionary Sector
Bearish -0.33
-1.0 0 +1.0
Other Patterns Detected Today
Ascending Triangle
20 days in pattern
Good 32.1
Bullish Pennant
25 days in pattern
Moderate 27.9
Post Collapse Recovery
62 days in pattern
Good 30.0
Overall Score
40 of 40
Exceptional
Pattern Quality
20 of 20
Exceptional
Setup
11 of 20
Fair
R/R
4 of 18
Weak
Context
Pattern Quality Score
15 of 15
Exceptional
Structure
13 of 13
Exceptional
Breakout
12 of 12
Exceptional
Volume
Recent Performance
+4.6%
1W
+28.3%
2W
+42.5%
1M
+99.9%
3M
Momentum & Trend
RSI (14)
65.8
Neutral
MACD Histogram
+0.10
Bullish
Bollinger Band Position
93.3%
Upper Band
Volatility & Risk
20-Day Volatility
1.06
Very High
ATR %
8.7%
High
Beta
2.07
High Beta
Volume Analysis
Volume Ratio
0.82x
Average
20-Day Avg Vol
2.3M
shares / day
Current Volume
1.9M
shares traded
Price Levels
52W High
$31.94
Resistance
$22.12
Target
$14.88
Current
$13.95
Stop Loss
$12.68
Support
$6.87
52W Low
$5.63
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.