Chart Pattern - Spring - Cerillion

This is a classic spring-style setup, first outlined by Richard Wyckoff in the mid-20th century. It’s one of our preferred trade entries at FoundryStrat because the pattern recurs frequently across markets, offers attractive risk-reward, and comes with clearly defined entry and stop-loss levels.

For a comparable example, see our earlier Novo Nordisk trade, which followed a similar structure and is currently working well.

Turning to the chart, note the initial low formed in April 2025. The subsequent bounce from that level demonstrated that the stock respects prior support and is capable of forming reliable spring patterns. More recently, price undercut that same low again, but crucially rebounded immediately back above it — a key characteristic of a Wyckoff spring.

Our stop-loss is placed just below the recent low, while the upside target is a retest of the recent highs. In this case, we are targeting the October high, with potential for a further rally towards 1,800p, as highlighted by the two green boxes on the chart. The entry is around 1,200p, giving a favourable asymmetric setup.

This type of opportunity appears regularly across equity markets and can be highly profitable when executed with discipline. As always, we prefer these technical setups to be supported by strong fundamentals. CER fits this profile well, having delivered excellent revenue growth over the past five years, alongside strong returns on equity, high margins, and steadily growing cash levels.

We’ll follow up with a post-trade analysis in due course to review how the setup played out.e.