IRWD: Bullish Momentum Divergence DevelopingThe stock may appear stagnant, but momentum signals are flashing early signs of a potential shift. Both the Relative Strength Index (RSI) and Stochastic Momentum Index (SMI) are making higher lows, signaling a shift in underlying strength.
This type of bullish divergence suggests that downside momentum is weakening, even though price has yet to reflect it. Historically, setups like this precede reversals as selling pressure fades and buyers step in.
With momentum building and the stock at severely oversold levels, a breakout from this consolidation could trigger a sharp move higher.
Stay tuned. 📈
IRWD trade ideas
IRWD: Major Reversal Brewing? Key TA Levels & Fib Price TargetsThe 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!
IRWD BullishMACD crossed and the most recent candle tested 3 fib levels to close above the .78 level.
I like that the price has closed above the descending trendline for the past week or so.
Looking for a pullback to the 13.39-13.58 to consider averaging in.
$15.24 short term target, $17ish in the medium term.
IRWD, enters Uptrend as Momentum ascends above 0 level 10/07/20This indicator may be signaling that IRWD's price has momentum to move higher, since its current price exceeds the price logged 14 days ago. Traders may consider buying the stock or exploring call options. Tickeron A.I.dvisor backtested 83 similar cases where IRWD's Momentum Indicator exceeded 0, and 71 of them led to a successful outcome. Odds of Success: 86%. Current price $10.25 crossed the resistance line at $9.85 and is trading between $10.25 resistance and $9.85 resistance lines. Throughout the month of 09/04/20 - 10/07/20, the price experienced a +0.87% Uptrend. During the week of 09/30/20 - 10/07/20, the stock enjoyed a +10% Uptrend growth.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 07, 2020. You may want to consider a long position or call options on IRWD as a result. Tickeron A.I. detected that in 71 of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 86%.
The Moving Average Convergence Divergence (MACD) for IRWD just turned positive on October 07, 2020. Looking at past instances where IRWD's MACD turned positive, the stock continued to rise, Tickeron A.I. shows that in 35 of 44 cases over the following month. The odds of a continued upward trend are 80%.
IRWD moved above its 50-day Moving Average on October 07, 2020 date and that indicates a change from a downward trend to an upward trend.
Following a +5.34% 3-day Advance, the price is estimated to grow further. Considering data from situations where IRWD advanced for three days, Tickeron A.I. detected that in 224 of 293 cases, the price rose further within the following month. The odds of a continued upward trend are 76%.
IRWD may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Looking for buy signals in Ironwood Pharma post earnings beat.Despite the rally today it looks like there is plenty of gains still to be had, but we await some furthur buy signals before entering a trade listed below-
Closing with a higher high on the RSI
MACD cross above zero line
Close above Cloud
High Buy side Volume
EARNINGS BEAT
IRWD came out with quarterly earnings of $0.08 per share, beating Consensus Estimate of a loss of $0.07 per share. This compares to loss of $0.28 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 214.29%. A quarter ago, it was expected that this drugmaker would post a loss of $0.16 per share when it actually produced a loss of $0.26, delivering a surprise of -62.50%.
AVERAGE ANALYSTS PRICE TARGET $14.50
AVERAGE ANALYSTS RECOMMENDATION OVERWEIGHT
P/E RATIO
SHORT INTEREST 13%
COMPANY PROFILE
Ironwood Pharmaceuticals, Inc. is a commercial biotechnology company, which engages in the discovery, commercialization, and development of medicines. Its products include linaclotide, a guanylate cyclase type-C agonist which treats patients irritable bowel syndrome with constipation and chronic constipation. The company was founded by Peter M. Hecht, Eric F. Summers, G. Todd Milne, Brian M. Cali, Joseph C. Cook Jr., and Gina Bornino Miller in 1998 and is headquartered in Cambridge, MA.
IRWD LONGWe see IRWD trading in an ascending cannel, yesterday left a hammer in the trend line of the channel with a really nice volume. Maybe we are late, but I would wait for a pullback to 15.85 to enter long. The first TP is in 17.7, but I will with to see it in 20.
KL: 15.85
SL: 14.90
TP1: 17.75
TP2: 20.00