The stock is now deeply oversold, and key technical signals suggest a potential reversal is forming. With Fib retracement levels plotted on a chart spanning from Mar 2024 to now, the upside potential is clear. The absurd and recent $1.55 low serves as the base for this retracement, and multiple bullish technical signals that I follow closely are aligning.
• Double Bottom Formation → A potential double bottom appears to be forming, signaling that a trend reversal may be underway. This pattern, combined with oversold conditions, suggests that downside momentum is exhausting, setting up for a strong move higher.
• RSI at 24 with Bullish Divergence → RSI is sitting at deeply oversold levels (24) but has made higher lows during this double bottom, a classic sign of bullish divergence. This indicates that selling pressure is weakening, even as price has retested lows.
• Bollinger Bands & Parabolic SAR → Bollinger Bands are tightening, signaling price compression that often precedes a major breakout. At the same time, Parabolic SAR is starting to flip to bullish, adding further confirmation that momentum is shifting.
• Short-term targets → The 23.6% retracement at $3.74 and the 38.2% retracement at $5.06 are key areas where the stock could trade as it regains lost ground. Given the current setup, a violent reversal could send IRWD straight to $5.06, where initial resistance may appear.
• Medium-term targets → After some consolidation, a move toward the 50% retracement at $6.12 is increasingly probable. This is a psychological turning point, often marking the transition from recovery to trend continuation. The next key level is the 61.8% retracement at $7.19, a crucial technical area where momentum traders typically engage.
• Longer-term potential → If momentum sustains, the 78.6% retracement at $8.71 is the next major level, with a full recovery to $10.64 or higher entirely possible as valuation aligns with technical strength.
With multiple bullish indicators aligning—double bottom, RSI divergence, Bollinger Bands tightening, and a Parabolic SAR flip—IRWD looks primed for a major move. The technicals suggest a breakout is brewing, and the downtrend may have run its course.
Please remember to complete your own due diligence before making any investment decisions. Good luck to all!
• Double Bottom Formation → A potential double bottom appears to be forming, signaling that a trend reversal may be underway. This pattern, combined with oversold conditions, suggests that downside momentum is exhausting, setting up for a strong move higher.
• RSI at 24 with Bullish Divergence → RSI is sitting at deeply oversold levels (24) but has made higher lows during this double bottom, a classic sign of bullish divergence. This indicates that selling pressure is weakening, even as price has retested lows.
• Bollinger Bands & Parabolic SAR → Bollinger Bands are tightening, signaling price compression that often precedes a major breakout. At the same time, Parabolic SAR is starting to flip to bullish, adding further confirmation that momentum is shifting.
• Short-term targets → The 23.6% retracement at $3.74 and the 38.2% retracement at $5.06 are key areas where the stock could trade as it regains lost ground. Given the current setup, a violent reversal could send IRWD straight to $5.06, where initial resistance may appear.
• Medium-term targets → After some consolidation, a move toward the 50% retracement at $6.12 is increasingly probable. This is a psychological turning point, often marking the transition from recovery to trend continuation. The next key level is the 61.8% retracement at $7.19, a crucial technical area where momentum traders typically engage.
• Longer-term potential → If momentum sustains, the 78.6% retracement at $8.71 is the next major level, with a full recovery to $10.64 or higher entirely possible as valuation aligns with technical strength.
With multiple bullish indicators aligning—double bottom, RSI divergence, Bollinger Bands tightening, and a Parabolic SAR flip—IRWD looks primed for a major move. The technicals suggest a breakout is brewing, and the downtrend may have run its course.
Please remember to complete your own due diligence before making any investment decisions. Good luck to all!
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