Above is a daily chart of IRBT, and as you can see, the stock has made a remarkably strong move over the past two weeks. In that short span, IRBT has surged from roughly $1.40 to $5.55, and it has done so on exceptionally heavy volume. Any time you see a multi-week run of this magnitude, especially from a beaten-down name, it grabs your attention. The strength is undeniable, but at the same time, it’s important to stay grounded and recognize where this move is taking place in the bigger picture.
As prices push higher, IRBT is now approaching a zone of heavy overhead resistance. When you look back at the chart from last fall, the $6 level stands out clearly as an important area. On multiple occasions, this zone acted as support, holding the stock up before ultimately breaking down. Then, in March, IRBT gapped below $6 and has remained under that price for the better part of nine months. Once a stock breaks down through major support and stays below it for an extended period, that former support almost always transitions into resistance.
We already saw this play out just two months ago. IRBT rallied up toward the $6 area, tested it, and failed almost immediately, turning back lower as sellers stepped in. Now, the stock is making another run at that same level, and the reaction here should be telling. What I’ll be watching closely is how volume behaves as IRBT pushes into this zone. If volume expands on the way into resistance, it could signal increasing interest or even accumulation. But it’s equally important to stay mindful of the significance of the $6 barrier. Until the stock can convincingly clear that level, caution remains warranted.
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