iRobot Corp (IRBT) – Triple Bottom Reversal Play (Buy Setup)

205
Setup Summary:

-Timeframe: 1H Heikin Ashi

-Pattern: Classic Triple Bottom forming off a major Demand Zone

-Break of Structure (BoS) will confirm the reversal bias, you may wait for a close above the line or jump now!

-Key breakout potential with tight risk and high upside reward

Fundamentals (Q2 Earnings)

-EPS Surprise: Reported -$0.27 vs Est. -$1.12 → Beat by 75.89%

-Revenue: $127.56M vs Est. $125M → Beat by $2.56M

"Big upside EPS surprise shows cost management or margin improvements, adding bullish bias"

Technical Analysis:

Demand Zone: Heavily tested, triple-tap pattern suggests absorption complete

Triple Bottom Levels:

Touches: 3 confirmations at ~$3.21

Breakout Zone: $3.60

Supply Zone Target: $5.10



📌 Trade Plan
Component Level
🎯 Entry $3.60 (Now) or wait for breakout confirmation $3.73
🛑 Stop $3.35 (just under the triple bottoms)
🎯 TP1 $3.84 (1:1 RR)
🎯 TP2 $4.09 (2:1 RR)
🎯 TP3 $4.34 (3:1 RR)
🎯 TP4 $4.59 (4:1 RR)
🎯 TP5 $4.83 (5:1 RR)
🎯 TP6 $5.08 (6:1 RR)
🎯 TP7 $5.33 (7:1 RR)

RR Ratio: Potential up to 6:1


Trade Management:

Move Stop Loss to Break Even at TP1

Trail stop up each RR level

Consider scaling out at TP3–TP5 range

Exit entirely near supply zone or at the trendline break

“The market is a device for transferring money from the impatient to the patient.” – Warren Buffett

⚠️ Disclaimer

This is not financial advice. For educational purposes only. Always do your own research and consult a licensed financial advisor. Trading involves risk.

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