Stock Trading Predictions & Technical Analysis: IRE

Friday, November 6, 2009

IRE - Shooting up

IRE - BUY CONFIRMATION

In the past two days, IRE has shooted up about +50%, having two consecutive breakouts, going from around $8.00 to $12.00. Yesterday, we had a BUY SIGNAL, where a position in IRE may have been considered, and today we had a BUY CONFIRMATION. The stochastic, also has given us a BUY SIGNAL. IRE has little resistance to go through at $13.00, and it has the potential to quickly go to $16.00. However, IRE is an extremely volatile, and may have as big down swings as it did upwards. Considering the fact that IRE has been up about +50% in just two days, is enough to show how risky taking a long position now may be. On a day-to-day basis you could see a big swing down, but I believe that IRE will now be in a strong up trend in the longer term (2-3 weeks time range). If you even consider taking a long position with IRE you must absolutely have a stop loss order set also. Taking a long position in IRE could give you big returns very quickly, but if you don't have a stop loss order set, you could find yourself as quickly into big losses. IRE's volatility reminds me of how AIG moves. I do believe IRE still has some steam left before seeing a pullback, but this is a stock you have to monitor very carefully as within each tick you may see big price swings. The reason for this, is because IRE has a very low volume average of just 627,000. The recent surge in volume though, is bullish and required for the stock continue higher. IRE is a BUY CONFIRMED, but a very cautious one. The BUY CONFIRMED is based on a potential move within up to 2-3 weeks, but on a daily basis you could see big down swings.

3 comments:

mycNovember 10, 2009 at 3:34 PM
hi,
ire realized approx 6-7% loss today, hit the 10-11% loss too during the day...

what is yor up-to-date expectation? up-trend or strong down-trend?

thx
L
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YoelNovember 11, 2009 at 12:35 AM
IRE is still trending up, but like I mentioned in the analysis, this is a very volatile stock, and therefore very risky. IRE can have big down days such as today of as much as -10%. On the flip side it can have up days of +20%. However, to only clearly know if the trend reversed (back down) you would need to wait for another down day. You would most likely have to take a big loss of perhaps as much as -20%, if not more. IRE's support currently stands at around $10.90. A fall below this level could send it straight down to $10.00 or $9.00. Basically you want to see IRE trade above $12.00 for it to maintain its up trending channel. The current resistance level stands at $13.00.
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mycNovember 11, 2009 at 4:14 AM
ok
many thanks for your useful info
rgds
L
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TECHNICAL INDICATORS

BUY SIGNAL: Indicates the possibility of the start of a new up trend or the continuation of the current up trend. This signal may be often given in the early stages of a potential new up trend that was preceded by a down or sideways trend. Such signals do not always succeed and may fail at time.

BUY: Indicates that the current up trend is already in motion and a BUY SIGNAL was already given earlier. A BUY does not necessarily indicate that the stock will continue higher from here, but simply that the stock is trending up. The further into the trend you decide to take a long position, the more risk you have of seeing it reverse back down sooner rather than later.

STRONG BUY SIGNAL: Indicates a stronger, more significant and reliable signal than a BUY SIGNAL which usually has less chance of failing. Such signals do not always succeed and may fail at time.

STRONG BUY: Indicates that the current up trend is already in motion and that STRONG BUY SIGNAL was already given.

SELL SIGNAL: Indicates the possibility of the start of a new down trend or the continuation of the current down trend. This signal may be often given in the early stages of a potential new down trend that was preceded by an up or sideways trend. Such signals do not always succeed and may fail at time.

SELL: Indicates that the current down trend is already in motion and a SELL SIGNAL was already given earlier. A SELL does not necessarily indicate that the stock will continue lower from here, but simply that the stock is trending down. The further into the trend you decide to sell a position, the more risk you have of seeing it reverse back up.

STRONG SELL SIGNAL: Indicates a stronger, more significant and reliable signal than a SELL SIGNAL which usually has less chance of failing. Such signals do not always succeed and may fail at time.

STRONG SELL: Indicates that the current down trend is already in motion and that STRONG SELL SIGNAL was already given.

HOLD: Indicates that traders who already hold this stock, should hold on as long as the trend persists. This signal is usually given during an up trend for which it would be considered too risky to take a long position at this point.

STRONG HOLD: Indicates that the current trend has been in motion for a while and rarely deviated away from the trend. Although the stock may continue higher, there may not be enough potential up side to trigger a BUY SIGNAL. This type of indicator usually means that the stock has very strong support levels which may have been tested but not broken.

WAIT: Usually given during a sideways trend for which we are waiting for a move that would trigger a BUY SIGNAL or SELL SIGNAL. This could also indicate uncertainty and the risk that would be taken if you were to take a long position at the current level. Taking a long position after giving a WAIT indicator is considered a gamble.