IRESS LIMITED (ASX:IRE) Potential buy? Insiders think so
Updated
IRESS is another software company listed on the ASX where it is a provider of financial data and markets as well as asset management. Unlike the recent boom in tech stocks IRE has trailed behind and has not recovered to pre pandemic evaluation. However there may be something we don't know that could make IRE a potential buy. Recently (As off the 22nd of Feb) a non executive director Roger Sharp has made a 10,000 share investment at $9.98 according to Market Index. There is also other supporting fundamental analysis news as well as TA which I will further discuss to come to an overall conclusion of the stock.
Bullish Technical Analysis:
--> Oversold RSI (38)
--> Oversold Stochastic RSI
--> Bollinger bands oversold
--> Bullish Harami pattern (From 25/02/2021)
This TA alert was also executed on the (3/11/2020) and resulted in a 12% increase and therefore can be taken into consideration for a bullish trade
Bearish Technical Analysis:
--> Bearish volume as from my BuySell volume indicator has shown that there has been increased selling in shares and may possibly inhibit a bullish reversal
--> Bearish MACD shows the bears are controlling IRE however due to its lagging nature should be reconsidered.
Bullish Fundamental Analysis:
--> Director Roger Sharp make a 100k investment on the 22nd which should be taken under consideration
--> Past earnings showed an increased profit growth from 7-10%
--> A new partnership has emerged with Knowledge bank where they seek to create the first "United Kingdom fully integrated product and sourcing system".
More details on partnership: mortgageintroducer.com/knowledge-bank-iress-partner-launch-product-criteria-sourcing-system/
Bearish Fundamental Analysis:
--> ASX seems to have bearish direction which may inhibit a long trade
Overall conclusion:
I would consider this stock a buying opportunity, With insider trading it shows that internal shareholders believe in IRE's future which alone acts as a major catalyst for a trade. Technicals also support a long trade so overall I would say this has potential for a swing trade or even an investment.
Any thoughts and ideas of IRE's future will be great :)
Bullish Technical Analysis:
--> Oversold RSI (38)
--> Oversold Stochastic RSI
--> Bollinger bands oversold
--> Bullish Harami pattern (From 25/02/2021)
This TA alert was also executed on the (3/11/2020) and resulted in a 12% increase and therefore can be taken into consideration for a bullish trade
Bearish Technical Analysis:
--> Bearish volume as from my BuySell volume indicator has shown that there has been increased selling in shares and may possibly inhibit a bullish reversal
--> Bearish MACD shows the bears are controlling IRE however due to its lagging nature should be reconsidered.
Bullish Fundamental Analysis:
--> Director Roger Sharp make a 100k investment on the 22nd which should be taken under consideration
--> Past earnings showed an increased profit growth from 7-10%
--> A new partnership has emerged with Knowledge bank where they seek to create the first "United Kingdom fully integrated product and sourcing system".
More details on partnership: mortgageintroducer.com/knowledge-bank-iress-partner-launch-product-criteria-sourcing-system/
Bearish Fundamental Analysis:
--> ASX seems to have bearish direction which may inhibit a long trade
Overall conclusion:
I would consider this stock a buying opportunity, With insider trading it shows that internal shareholders believe in IRE's future which alone acts as a major catalyst for a trade. Technicals also support a long trade so overall I would say this has potential for a swing trade or even an investment.
Any thoughts and ideas of IRE's future will be great :)
Comment
As of the next trading day (Idea was written last night but posted today) it seems as IRE is following the market direction down today. I am hoping that the price closes today above a current support level which is around $9.17.
Comment
As i was hoping for IRE closed above $9.17 at $9.19 where it closed as a Bullish Red Hammer. Price action showed strong support at my given support level which i hope can now further act as a measure to bounce off upwards,
This further prompts a upward maneuver where my thesis remains bullish.
Comment
IRE has barely managed to stay above my support level, a lack of volume seems to be inhibiting its movement.Since my last comment IRE has partnered with Listcorp to provide South Africans software to access markets. This has provided IRE with a new exposure to retail investors globally.
However this news has not been reflected in the price.
Short levels are also maintained at 1.55% so shorting behavior has not increased
Comment
With yesterdays large increase in volume it has carried momentum for todays price movement, hopefully the volume follows today for a bullish reversal. Bullish movement has been inhibited from a decrease in volume there hopefully If higher volume persists a price increase will occur.
Stop loss is @ $8.86
Trade closed: target reached
2nd price target was reached @$9.60. Trade duration was unexpected and nearly reached stop loss multiple times. This then inclined me to exit the trade at market open.
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