170% Upside to Target—And the Move May Already Be Starting

May 18, 2025

This Quiet Cybersecurity Contractor Is Building Toward a Breakout

While the market is distracted by megacaps and meme stocks, one of the cleanest technical setups in small-cap land is developing under the radar.

The company? Castellum Inc. (NYSE American: CTM)

A $1 stock that just might be on the verge of becoming a $3 stock.

Not because of hype.

But because of a textbook chart pattern, improving financials, and a growing role in one of the most important sectors in America today: cybersecurity defense.

CTM isn’t some trendy name trying to attach itself to buzzwords. It’s a real defense contractor, providing IT and cybersecurity services to U.S. government agencies and Department of Defense operations. 

Since 2019, it has completed 9 acquisitions, scaled revenues 6x, and built out a leadership team with deep roots in defense, intelligence, and federal contracting.

But what really caught my attention is the chart.

Over the past two months, CTM rallied more than 60% off its lows, and rather than giving back those gains, it's been consolidating tightly.

The key? A classic volatility contraction pattern is unfolding.

  • Higher lows: Each dip is being bought up quicker than the last. The market is showing its hand.

  • Lower highs: Sellers are running out of steam.

  • 10-day and 20-day moving averages curling upward: These two short-term momentum indicators are aligning under price and acting as support. This is exactly what you want to see in a pre-breakout base.

  • From a technical standpoint, this is an A+ setup. 

Price is compressing into a wedge, hovering just under recent resistance near $1.11. 

If CTM can break above this level on volume, it opens the door for a fast move.

What makes the case stronger is the improving business fundamentals.

In the past year, Castellum posted record revenues, expanded gross margins, and is forecasting continued growth through a mix of organic expansion and bolt-on acquisitions. The company services key agencies across defense, intelligence, and homeland security. These aren’t experimental revenues — they’re coming from multi-year federal contracts.

And with rising geopolitical tensions, U.S. cybersecurity spending is expected to climb significantly.  That money is going somewhere. And Castellum is already on contract with the Department of Defense (DoD), Department of Homeland Security (DHS).

Analyst coverage is starting to emerge as well.

Maxim Group issued a $3.00 price target, implying nearly 200% upside from current levels. Insiders hold a substantial position, with the CEO publicly stating that they believe the company is fundamentally undervalued.

This is how breakouts begin:

  • Real business

  • Real revenues

  • Clean base

  • Strong sector tailwinds

If you’ve been waiting for a tactical trading setup with asymmetric upside and defined risk, CTM checks the boxes.

But make no mistake — once it breaks through this $1.11 range on volume, the train may leave the station quickly.

Watch for the pop. And have your plan ready.

To smart trading,

Kristen Harpula, Editor
Trading Whisperer

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