Power Solutions International Inc

PSIX remains in a medium-term bullish advance within a Stage 2 regime, but the latest Bullish Exhaustion at a new high and overbought conditions on RSI signal a likely near-term pullback. Execution should be deferred for a structural reaction into the rising 20 EMA and prior resistance–turned–support zone around $39–40. High-quality asset discipline calls for patience; a clean pullback and acceptance near short-term EMAs will offer a higher-probability entry. Failure of the 20 EMA to hold on a retracement would invalidate the medium-term bullish thesis.

• ↑Q2 EPS $0.73; sequential revenue growth 18.6% to $152.5M.
• ↑Operating cash flow $56.6M and gross margin improved to 27.1%.
• ↓Leverage remains high, limiting refinancing flexibility.