Another stock that’s starting to move within range of triggering a near-term breakout trade is Inventergy Global (INVT), which identifies, invests in, acquires and licenses patented technologies. This stock has been destroyed by the sellers over the last six months, with shares plunging lower by 70%.
If you take a glance at the chart for Inventergy Global, you’ll notice that this stock has been downtrending badly for the last six months, with shares falling huge from its high of around $2 a share to its new 52-week low of 39 cents per share that has hit just a few weeks ago. During that downtrend, shares of INVT have been making mostly lower highs and lower lows, which is bearish technical price action. That said, shares of INVT have now started to rebound sharply higher off that 39 cents per share low and it’s quickly moving within range of triggering a near-term breakout trade above some key overhead resistance levels.
Traders should now look for long-biased trades in INVT if it manages to break out above some key near-term overhead resistance levels at 60 cents per share to its 50-day moving average of 61 cents per share with high volume. Look for a sustained move or close above those levels with volume that registers near or above its three-month average action of 131,947 shares. If that breakout develops soon, then INVT will set up to re-test or possibly take out its next major overhead resistance levels at 70 cents to 74 cents per share, or even 85 cents to 88 cents per share, or $1 a share.
Traders can look to buy INVT off weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support at 46 cents per share. One can also buy INVT off strength once it starts to bust above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.