Ionatron (IOTN)


"Ionatron, Inc. is a solution provider that develops and markets Laser Guided Energy (LGE(TM)) and related products to defense and security customers for unique applications worldwide. Ionatron has significant expertise in the application of high-power lasers, optics and energy management technologies. Headquartered in Tucson, Arizona, Ionatron is focused on solving technology problems directly for its government and security-conscious customers." (company website)

IOTN 3-month stock chart


I recently lost money on IOTN during a big selloff. However, the one-month moving average (center of the Bollinger band) seems to have supported the stock. The chart still looks pretty strong, so I'll try again!

  • Price momentum (PPO) — rose steeply over last three months
  • Trend (ADX) — very strong, and buying pressure (+DI) is much stronger than selling pressure (-DI)
  • Money flow (CMF) — trend line is positive although inflow and outflow are roughly balanced now
  • Relative strength (RSI) — trend is a gradual strengthening
  • Volume — increasing for last month

Based on technical analysis, MarketEdge calls IOTN a "buy" in a "strong upward trend."

IOTN 2-month chart IOTN 2-month chart


gain Bottom line

IOTN has been following the upper Bollinger band for over a week, and after making another new high yesterday, it started to fall today. I decided to close the position and take a reasonable profit.

IOTN has become overbought; it has climbed 50% in just a few weeks. Although the trend (ADX) remains very strong, buying pressure (+DI) leveled off. It it plays out as expected, IOTN will pull back to the lower edge of the channel and bounce back up again. If so, it will be time to jump on again. Earnings, due soon, could have a big impact on the future direction.