Thursday, January 22, 2015

iRobot Corporation (NASDAQ: IRBT)

iRobot Corporation designs, develops, and markets robots for consumer, defense and security, telemedicine, and video collaboration markets worldwide. The company operates in two segments, Home Robots and Defense and Security Robots. It offers consumer products, including floor vacuuming and washing robots, floor sweeping robots, and pool and gutter cleaning robots. The company also provides defense and security products, such as ground robots comprising 510 PackBot line of small unmanned ground robots; the small unmanned ground vehicle multi-purpose ground robots; the 110 FirstLook small, light, and throwable robot; and the 710 Warrior multi-purpose robot for carrying heavy payloads. It markets its robots to consumers through chain stores and other national retailers, as well as through its on-line store; and to the U.S. military, and other government agencies.
Take a look at the 1-year chart of iRobot (Nasdaq: IRBT) with the added notations:
1-year chart of iRobot (Nasdaq: IRBT)
IRBT has been trending slightly lower over the last 12 months while repeatedly finding support at $30 (green) whenever that level has been approached. Now that the stock is almost there again, traders should be able to expect some sort of bounce. However, if the $30 support were to break, much lower prices should follow.

The Tale of the Tape: IRBT has a key level of support at $30. A trader could enter a long position at $30 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.
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