IEA Ascending Channel

Bullish Ascending Channel. Looks like IEA may bounce off the 50-MA for a nice buy-in opportunity. RSI levels under 40 have proven to be good buy points thus far, and further indicate that IEA is oversold here and has some potential to move up.

IEA may also have some room to fall if it breaks the 50-MA. It is best to wait until the reversal is confirmed and until RSI drops below 40.

Note: This is not professional trading advice and should not be taken as such. Trade at your own risk.

Comment:

IEA could be holding support on 70 MA and is currently oversold on the RSI. It will likely be best to wait until IEA proves that it can hold support before entry.

Trade active:

8/20/21 $30 C (Avg Price: $5.70)

Comment:

You may ask, why is IEA down so much 15% today? The only reason is because the largest shareholder, Oakleaf, is cashing out their shares. They have held their shares throughout all of IEA's run and are simply taking profits. No need to be concerned unless IEA breaks under the channel.

Comment:

IEA is still oversold and has a variety of bullish factors:
-Oversold RSI
-Testing the 100MA
-Testing lower bound of channel
Strategy: Due to the quality of the risk-reward ratio, this may be a good time to grab leap options and calls. Prepare to take profits as IEA approaches upper bound of channel or becomes oversold. Set stop losses outside of lower bound of channel. Good luck! Idea on chart below:

Trade closed: stop reached:

Broke out of lower channel bound. Seems to have broken support. There is still small hope here, but I decided to follow the technicals and sell. (-36%)
If you are still in, or are looking for a buy-in, the $16.50 level (150MA, 4hr chart) is a great place to consider your next move.