The price of IEX has encountered considerable selling pressure following a 700% surge from the March 2020 lows.
Subsequently, the stock experienced a 60% decline before demonstrating a phase of stabilization, indicative of entering stage 1 of the stock cycle.
The stock showcased an extended consolidation period, effectively limiting downturns and progressively reinforcing the trend, signalling a departure from downward pressure exerted by disenchanted stakeholders.
Notably, the stock recently executed its initial breakout from its base into a more dynamic stage, reflecting a favorable development.
Furthermore, it has displayed improved earnings per share (EPS) and price strength, alongside robust buyer demand.
The Relative Strength Index (RSI) readings for daily and higher timeframes are notably trading substantially above their median levels, underscoring the momentum in price.
Considering the stock’s offering of a low-risk, high-reward opportunity, we advocate for acquiring IEX within the 194-189 range with a target price of 245, while using a stop loss at 178 to manage risk.