Chart of the Week: Iris Energy
Hey good morning – happy Wednesday. It’s time for our chart of the week and this week we’re going to be focused on energy name; symbol is IREN. It’s called Iris Energy, or IREN Limited.
It’s been a really strong chart since the breakout in May. Of course it based a little bit in April, and it’s had an almost 200% run. Maybe due for a little bit of a pullback but this stock has got tremendous momentum, and I think it’s got some legs to go.
Let’s take a look at this chart right here.
As you can see the nice pattern of higher highs, higher lows. It’s been tracing this trend line here since the beginning of May. Every time it checks back to that little trend line here, it makes a nice move up. It made a really huge move up from June when it tagged that $10 level, bounced right off of there, and went up about 50% from that level.
Pulled back a little bit recently at the beginning of August and has been making a stair step type of move for IREN. And it’s not too overbought here. Of course, when it got overbought back in late June, it stayed overbought for about a month. Now, it does not mean you need to sell stocks when it’s overbought. If you’d have sold this stock when it got overbought here, you missed out on a nice run. Momentum can stay strong for a lot longer than most people believe.
We have good money flows back in starting in April – look at that. Look at those money flows, really interesting.
When the stock was at around $6-7, the money flow was extremely strong, which means what? Which means that big institutions were still coming in and buying the stock hand over fist before the stock took off to the upside – while it was moving up to the upside. So it tells you that big money/institutions are in there with good support in this stock.
We also saw some really good strong volume here for the past two months – July and August. And also money flow has been solid as well for the last couple of weeks. And on-balance volume has been extremely positive too, from the bottom left to the upper right.
Nothing wrong here.
We also just got a buy signal crossover confirmed on the MACD as well.
Stock is up – it’s had a couple of really strong days. It had a good day on Friday, last week on the 22nd. And it followed through with a really strong day the following Monday, which was down day for most stocks.
I’m impressed with the relative strength of IREN right here.
Let’s take a look at this stock going forward.
I think it has room to maybe get up to $30-35 – that would be a huge move here. Not gonna happen overnight. It’s going to take a couple of weeks, maybe couple of months to get up there.
A strong name with good momentum.
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