IRNT Finding the FloorIronNet is a cyber security firm that is pretty new on the market. Despite its debut being less than three months since the time of this idea publishing it has already seen some big upward movement, followed by a quick fall back to Earth. Was this purchasing by "smart money" or retail traders chasing a quick buck? Not sure of the answer, but a search of forums will show lots of individuals have already gotten burned by this stock. Any seasoned trader knows letting excitement get the best of you means losing money. Buying high after the run up = Holding the bag on the way down.
It is unfortunate when this happens, but until sold, those loses are unrealized... and IRNT appears to have big upside potential.
This chart shows two distinguishable levels of support established in the short time the stock has been trading. Level 1, around the $11.50 mark is most important as it is being tested now. The falling price hit the breaks approaching this mark. If the level holds, I believe we can expect a return to the ATR (blue channel) and upward movement as it enters the green channel.
The next level to watch will be the resistance point established at price Level 2. A breakout of this price signals strong upward momentum, though it may not stick around long on this volatile new issue.
For the long term view, cyber security is a critical and growing industry that will only get more important over time. This means companies will keep spending more on cyber, and that is good news for IronNet.
