The stock is now deeply oversold, and key technical signals suggest a potential reversal is forming. With Fib retracement levels plotted on a chart spanning from Mar 2024 to now, the upside potential is clear. The absurd and recent $1.55 low serves as the base for this retracement, and multiple bullish technical signals that I follow closely are aligning.
• Double Bottom Formation → A potential double bottom appears to be forming, signaling that a trend reversal may be underway. This pattern, combined with oversold conditions, suggests that downside momentum is exhausting, setting up for a strong move higher.
• RSI at 24 with Bullish Divergence → RSI is sitting at deeply oversold levels (24) but has made higher lows during this double bottom, a classic sign of bullish divergence. This indicates that selling pressure is weakening, even as price has retested lows.
• Bollinger Bands & Parabolic SAR → Bollinger Bands are tightening, signaling price compression that often precedes a major breakout. At the same time, Parabolic SAR is starting to flip to bullish, adding further confirmation that momentum is shifting.
• Short-term targets → The 23.6% retracement at $3.74 and the 38.2% retracement at $5.06 are key areas where the stock could trade as it regains lost ground. Given the current setup, a violent reversal could send IRWD straight to $5.06, where initial resistance may appear.
• Medium-term targets → After some consolidation, a move toward the 50% retracement at $6.12 is increasingly probable. This is a psychological turning point, often marking the transition from recovery to trend continuation. The next key level is the 61.8% retracement at $7.19, a crucial technical area where momentum traders typically engage.
• Longer-term potential → If momentum sustains, the 78.6% retracement at $8.71 is the next major level, with a full recovery to $10.64 or higher entirely possible as valuation aligns with technical strength.
With multiple bullish indicators aligning—double bottom, RSI divergence, Bollinger Bands tightening, and a Parabolic SAR flip—IRWD looks primed for a major move. The technicals suggest a breakout is brewing, and the downtrend may have run its course.
Please remember to complete your own due diligence before making any investment decisions. Good luck to all!
• Double Bottom Formation → A potential double bottom appears to be forming, signaling that a trend reversal may be underway. This pattern, combined with oversold conditions, suggests that downside momentum is exhausting, setting up for a strong move higher.
• RSI at 24 with Bullish Divergence → RSI is sitting at deeply oversold levels (24) but has made higher lows during this double bottom, a classic sign of bullish divergence. This indicates that selling pressure is weakening, even as price has retested lows.
• Bollinger Bands & Parabolic SAR → Bollinger Bands are tightening, signaling price compression that often precedes a major breakout. At the same time, Parabolic SAR is starting to flip to bullish, adding further confirmation that momentum is shifting.
• Short-term targets → The 23.6% retracement at $3.74 and the 38.2% retracement at $5.06 are key areas where the stock could trade as it regains lost ground. Given the current setup, a violent reversal could send IRWD straight to $5.06, where initial resistance may appear.
• Medium-term targets → After some consolidation, a move toward the 50% retracement at $6.12 is increasingly probable. This is a psychological turning point, often marking the transition from recovery to trend continuation. The next key level is the 61.8% retracement at $7.19, a crucial technical area where momentum traders typically engage.
• Longer-term potential → If momentum sustains, the 78.6% retracement at $8.71 is the next major level, with a full recovery to $10.64 or higher entirely possible as valuation aligns with technical strength.
With multiple bullish indicators aligning—double bottom, RSI divergence, Bollinger Bands tightening, and a Parabolic SAR flip—IRWD looks primed for a major move. The technicals suggest a breakout is brewing, and the downtrend may have run its course.
Please remember to complete your own due diligence before making any investment decisions. Good luck to all!
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.