IRBT – New TAOST Stalk Candidate – 29 April 2016

iRobot – IRBT Stalk Candidate

29 April 2016

iRobot (IRBT Stalk Candidate) may figuratively (and literally) be the wave of the future…

Monthly Chart

The stock seems to have digested it’s run to the mid 40s.  It looks to be gathering steam for a new push higher now.

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Weekly Chart

It looks a bit messy, but the weekly chart reveals the growing support of market participants as the stock puts more price action behind (below) it.

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Daily Chart

iRobot is looks to have been under accumulation for a bit here.  That accumulation has culminated in a pop through resistance and looks geared to gather itself for a push even higher.
IRBT stalk candidate

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Trade Strategy for IRBT Stalk Candidate

I’m not a big fan of “buying the break.” Use a pullback toward support/previous resistance ($34 to $36) for an entry.  The ellipse shows an optimal (if unlikely) area (between $34 and $34.50 for a nice tight risk entry if it gets there… I would use an initial stop just below $30 and an ultimate stop (meaning you no longer look for long setups) around $28.

Company Profile:

iRobot Corp. engages in the business of designing and building robots. It develops proprietary technology incorporating advanced concepts in navigation, mobility, manipulation and artificial intelligence to build robots. The company operates through two segments: Home Robots and Defense & Security Robots. The Home Robots segment includes mobile robots that are used in the maintenance of domestic households. The Defense & Security Robots segment includes robots that are used for reconnaissance and bomb disposal missions.

Metrics:

  • 52 Week Hi: $38.54
  • 52 Week Lo: $27.55
  • EPS: $1.44
  • PE Ratio: $25.07
  • Market Cap: $1.07 Billion

Profile and metrics via Seeking Alpha