If you were waiting on micro cap Universal Delivery Solutions’ (UDSG) chart to start behaving better before jumping in, you might want to take notice of some recent developments. The stock pulled out of the funk it was in during Q4 of last year, and is trying to find a new, bullish groove. Chart watchers take note - there’s a whole lot to think about here; we’ll look at just some of it.

In late January, UDSG broke above its 50 day moving average line for the first time in a long time. That move also shattered what was becoming a fairly troubling resistance line. Nice, but better still was how shares found support there on the 11th, and pushed off the 50 day line on the 12th.

As it stands right now, that’s a higher high and higher low. Though a little ambiguous, it’s also a decent start to a recovery.

Some traders would look at the chart and suggest a move above the early-February peak of 6 cents would be even more bullish (and we’d agree). But, if you don’t know to watch for it between now and then, you may miss it when it happens.

As for the levels Universal Delivery Solutions is likely to start or stop, we’ve got Fibonacci lines to help us draw that map.

The short-term Fib lines don’t really tell us much. Spanning from the October peak of 8.8 cents to the January low of 2.7 cents, we don’t see any relationship to the most recent (February) highs and lows.

When we zoom out and use last June’s high of 12 cents as a peak, then the recent high of 6 cents starts to make a little more sense.

A 38.2% retracement of that pullback would put the stock at 6.3 cents…just a hair above where we were a few days ago. We think that line is still in play though. If-and-when we revisit it, be alert. If we happen to cross it, the next potential ceiling lies at 8.5 cents. That’s also the high water mark for Q3 of last year, so we wouldn’t take a stall there too lightly.

All the same, the current momentum seems to be favoring the bulls. There hasn’t been much supporting news from the company over the last few days, which is a bit uncharacteristic of UDS Group. However, they continue to work on upgrading from their pink sheet status to the OTC bulletin board exchange.

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