iRobot (IRBT), the maker of vacuum cleaners and a variety of military, warehouse and office robots, yesterday rallied close to 6% after announcing a new product. The stock held important lateral support around the $40 area.
Considering that the current broader stock market is facing big headline risks from Ukraine/Russia to the U.S. Federal Reserve on Wednesday, I would like to see the stock confirm Monday’s rally with another up-day in coming days. Once this is established, the stock might again be ready to push past its early March highs.
Investors also have very clearly defined risks at last Friday’s lows near the $40 level, a drop below which would simply be bearish for the time being.
InvenSense Inc. (INVN), maker of micro-electromechanical gyroscopes for motion processing in consumer electronics also had a nice pop on Monday ans is now back above the black lateral resistance line that dates back to the stock's early 2012 highs. In the bigger picture the stock is still trying to overcome this level in a better way and Monday's move may have been a good start to this.