Oh thank you for the insight. This one i kinda threw up there for a buddy cause we liked how it fell right on the 200 ema on the weekly chart and how it fell right into the upwards support. I'm not long on it at all, in fact i had forgot that i even put it on here. i still think at this price it's a little rich for me to enter currently. If i were to enter my stop would be under the support or the 200 , but like i said i think at this price it's a little too much. Lately i've only been trading divergences, but i appreciate the look into this trade and will keep this in mind if the price were to continue to fall....i do like it more close to 60 like you said. I have their products and like their business.
Thanks again for all the info !! I've been trading for about a year and have been doing pretty good but still learning all the time !!
ogdabber
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@kaptkorea, well my readings aren’t 100% either... and even though I’ve been about 95% on my moves YTD, I’d still express caution before entering any trade — volatility has been high enough for anything to happen... sometimes, moves take longer to play out, and sometimes they happen in a fraction of the expected time ...
This could be correct! Even if it does fall below your suggested channel, it could correct. Although I feel there are plenty of reasons for another fall, it will be interesting to see how it plays out!
ogdabber
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I'm not saying this is necessarily the wrong perspective to use, but it is very bias... I'm also hold LONG positions for IRBT, but I would express caution when only acknowledging this incomplete pattern of MACD histogram... The signal line is not currently expressing this confidence, as it is plunging back down similar to the initial fall that you point out... If anything, using what you have in your chart, I would point out the complete bearish divergence of the MACD, and suggest that it is likely to have another small drop...
That said, your ascending channel does not account for any other drops... so, should this happen, what will you do? Actually asking out of curiosity... would you assume it would correct?
My thoughts on IRBT -- great company, moving in great direction, likely to hit new ATH by early next year... probably will stay in a slump at least for 5-6 weeks... No inside buys as of recent, so likely to have another small fall down to 63-67, after falling through 71 support... The buy signal for me are the 1Y indicators, and when management buys the dip.
--Regardless of how these events turn out, it will likely be interpreted negatively for IRBT...
My concern with the ever-ascending bullish channel is that it is not rational... Value cannot continuously rise, or this would ultimately lead to hyperinflation... Nobody wants this -- not the government, not the Fed, and not the people... Sustainable growth has ups and downs -- stocks turn up and calm down in cycles... Considering the indicators that I use, I would suggest that this upcoming week is more likely to reflect what happened in mid-late October 2017... and then we'll probably catch our ground -- if not, then watch out for double the fall (highly unlikely imo)...
I suppose what could work in conjunction with your bullish interpretation would be a LT double top reversal to touch back down on 57, and then boost back up around $110-115 by early this fall.
Thanks again for all the info !! I've been trading for about a year and have been doing pretty good but still learning all the time !!