Who wants to buy iRobot shares ?

Read the iRobots full article at : http://elliottwave-forecast.com/latest-home/not-a-good-time-to-buy-irobot-shares/

iRobot Corporation is an American advanced technology company which designs and builds military, police and home robots . However in April 2016, the corporation sold off its Defense & Security unit, with a new company being formed called Endeavor Robotics . So now it’s only focusing the work on the development of home and medical robots .

iRobot started being traded on the NASDAQ stock market exchange in November 2005, under ticker symbol IRBT. The first 3 years saw it’s stock price declining from a high of 37.90$ till it finally bottomed in March 2009 at 7$ , since then IRBT managed to rise for more then 600% in price making its investors very happy . But is it really a good time to think  about owning the company stock ?

Technical look of the weekly chart is showing 7 swings from 2009 low that ended at the equal legs in 2014 peak 48.36$ before correcting 50% of the rise . While the price keeps trading below the 2014 peak, the stock still has the possibility to do a double correction lower towards 61.8% area ( 22.8$ ) , only a break above it will indicate that the correction has ended opening a new extension to the upside . The break higher will make IRBT 9 swings from the lows which is a bullish incomplete sequence in our system so after that iRobot stock will still pullback in 3 waves before resuming higher to end 11 swings from 2009 low and do a larger correction

iRobot

The key level for iRobot stock remain breaking or holding 2014 peak and no matter what happens IRBT will end up doing 3 waves pullback suggesting that now isn’t really the best time to hold it’s shares as it’s approaching the end of cycle from 2015 low . So it’s better to wait for the stock to correct before buying it for another rally .

Continue reading the full article at : http://elliottwave-forecast.com/latest-home/not-a-good-time-to-buy-irobot-shares/

AlienOvichO

Full time Trader & Analyst