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Unity Software (U) stock has had quite the rollercoaster ride since its IPO, capturing the attention of investors and traders alike. Once hailed as a super growth stock, Unity saw an impressive parabolic run shortly after its debut. However, the bear market of 2022 brought the stock crashing down from $200 to around $20—a staggering drop of over 80%. Since then, Unity has been stuck in a prolonged consolidation phase, with a gradual downtrend that kept the stock in the laggard category.

Recently, though, there’s been a shift. Unity has shown signs of life, with a sharp swing from $14 to $21, driven by high beta activity. This movement has formed a promising structure, highlighted by a sign of strength rally followed by a bullish flag—a classic setup for swing traders. The breakout from this structure, accompanied by aggressive demand, suggests that Unity might be on the verge of a more significant move.

For traders, the immediate target is around $24, with stop-losses placed just below recent swing lows. If the stock commits above $24, there’s potential for a retest of previous highs around $40. While still in a big trading range, Unity Software could be setting up for a strong rebound—making it a stock to watch closely.

For a detailed trading plan for Unity Software (U) entry setup, watch the video below:

Video Length: 00:02:24

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