INSG (PRICE ACTION) RETRACEMENT AND BREAKOUT|PRICE ACTION|
ISNG price spikes consistently at 6 AM Standard Pacific Time and retraces for most of the day. Price has just hit resistance level at around 18 and will most likely retrace until 16, possibly lower. Floor support price is set around 13.90 and price has not broke down below it apart from JAN 6, support floor will most likely continue. MACD also show great momentum on the 1 hour time frame which means that it will most likely reverse soon. The MACD on the higher 4 hour time frame has just crossed signal line indicating likely hood in upward momentum on the higher 4 hour time frame.
(I am aware the support/resistance levels are free handed and have not been adjusted)
INSG trade ideas
INSG Inseego is setting up for the next run.. paying attention?Quick analysis on INSG Inseego the hot tech company deploying 5G hotspots with major telcos like Verizon.
Yes the stock has had a great run, but it's clearly got momentum and the fundamentals are strong. We are tracking an upward channel with a downward-facing wedge if you zoom in close. If the lines I drew are generally in the right spots, then we're seeing a breakout to the upside slowly creep and before anyone realizes this stock is likely to retest it's all-time highs again.
I'm bullish on 5G, so I love names like Inseego which are actually deploying hardware in the market and making headlines around strong performance.
What's your thought? Is my 5G bull bias blinding me or is the chart showing us what I'm seeing?
INSG avwap 'squeeze' should resolve to upside-INSG currently trades between VWAPs from significant YTD highs and lows, the tightening range of these VWAP lines creates a 'squeeze' like a tightening bollinger band or similarly a TTM squeeze, which signals a current decrease in price range and an increase in volatility is to come
Why I expect this increase in volatility to occur to the upside:
-50% retracement: INSG has consistently found support at the 50% retracement from the move higher off the March low
-Support in INSG/SPY: INSG finding support in relative performance to SPY was a prior predictor of ensuing outperformance vs. SPY, and having recently reacted higher from support, I expect outperformance to resume
Conclusion: tightening price range shown by anchored VWAP squeeze and a reversal higher in SPY relative performance point to an imminent upside breakout
INSG's weekly chart shows a consolidation pattern for 21 weeks.I anticipate an upward breakout out of the trading range because:
-price increases with higher volume and decreases on lighter volume
-higher support level as range develops
-larger trend is up for the market
Buy zone in the area of the new support level or following breakout and close above the range.
I'd hold for a few months to a year.