What’s Happening to the Share Price of Integrated Research Ltd?

What does Integrated Research Ltd do?

Integrated Research Ltd [ASX:IRI] provides software to monitor the performance of critical IT infrastructure. Their software ensures that critical systems do not break down, highlighting vulnerabilities and problems before they arise.

That’s interesting, but what is the chart telling us?

What does the chart look like?

I find it helpful to bring up a chart. The daily chart of IRI.

Integrated Research sept2015

Source: STEX

Over the last four and bit months the general market has been sold down heavily, not so with IRI shares. That should have made it a stock of interest.

You could argue that the stock made a lower low on the daily chart at 25 August, which is noted on the chart. However, you have to read the chart in the context of the time. This low formed following the big Dow plunge, where the Dow lost a thousand points very quickly over four trading days from 19 to 24 August.

Good stocks got caught in the panic and backdraft of all that selling. 25 August proved to be a great buying opportunity to add IRI and other quality stocks to your portfolio. That’s all very easy to say in hindsight I know, but I have plenty more to say on this point. My writing on the subject is over at Cycles, Trends and Forecasts.

The chart is telling you (for those who can read a chart) that this company is growing revenue. A thousand point plunge on the Dow does not alter that fact.

What now for IRI shares?

The chart is breaking further into all-time new highs; there has to be reason it should do so. We could perhaps expect further positive news from this company. Let’s wait and see.
First and foremost, know the real estate cycle, then you can read the charts in the context of previous cycles. When you do that you have such an advantage and you can be ready for the next opportunity as it comes.

You can know all about the real estate cycle and how to read the charts by going here.

Terence Duffy,
Research Analyst, Cycles, Trends and Forecasts

Join Markets and Money on Google+

Terence Duffy is an analyst and chartist, specialising in researching economic trends and cycles.  His primary focus is housing and land affordability. But you can also depend on him to offer his unique analysis of stock market charts. As Terence will show you, the charts often forecast, well in advance, the good or bad news to come — which he details in Cycles, Trends and Forecasts.

Leave a Reply

Your email address will not be published. Required fields are marked *

Markets & Money