I normally don't follow stocks that are as cheap and have disappointed so much as IOTN, but it is like an old friend that I grew apart from and like to check up on from time to time. This company seemed to be a home run a year ago as it reached almost $15 on major short-squeeze/technology-of-the-future mojo. Then slowly the truth about a "momentary" $100M+ production contract for its anti-IED system became known. Mainly that the system wasn't unacceptable to the military for various reasons and a contract was no where near. But tonight I don't want to get into the story or the fundamentals behind this once popular stock other than to say that "before the end of the month" (this week) government tests are scheduled for its new/upgraded anti-IED system. I used to follow it closely and now I just check the chart every week to make sure it still looks like crap, well when I looked this week I saw something I hadn't seen in a long time (it didn't look like crap).
IOTN broke out of a 9 month long downtrend that began with a 50% haircut over two weeks last May. Volume has been strong along with price gains and other positive technical indications. The rounded base IOTN formed on it's weekly below should provide a solid launch pad to it's 200 dma currently at $6.33 (50 dma) and $6.00 (200 dma). Support in the 5$ area looks like a great place to jump in for a quick ride and from way back the $6.5-8 area has been support and should now serve as resistance on this move. So I would target 7$ then wait and watch for news before re-entering. Generally speaking I like defense right now with all the talk of additional troops going to Iraq and a global arms race as the Mideast heats up.
Disclosure: I have March IOTN Calls but I wouldn't like to hold them that long if I don't have to.
IOTN broke out of a 9 month long downtrend that began with a 50% haircut over two weeks last May. Volume has been strong along with price gains and other positive technical indications. The rounded base IOTN formed on it's weekly below should provide a solid launch pad to it's 200 dma currently at $6.33 (50 dma) and $6.00 (200 dma). Support in the 5$ area looks like a great place to jump in for a quick ride and from way back the $6.5-8 area has been support and should now serve as resistance on this move. So I would target 7$ then wait and watch for news before re-entering. Generally speaking I like defense right now with all the talk of additional troops going to Iraq and a global arms race as the Mideast heats up.
Disclosure: I have March IOTN Calls but I wouldn't like to hold them that long if I don't have to.
1 comment:
U have a nice blog here.
Compiling my findings general blogging issues on my blog.
Keep blogging!!
Post a Comment