IronNet, Inc (NYSE:IRNT) soared up over 28% higher, at one point, on Wednesday after big bullish volume entered the stock. A short squeeze could be in the works due to IronNet’s underlying statistics:
- The stock has a small float of just 24.11 million shares with insiders and institutions owning 74.86% of the stock. The short interest on IronNet has also massively increased with current data showing 18.24% of IronNet’s shares are held short, meaning 4.4 million, compared to just 764,210 in August.
- As of Wednesday afternoon, over 20 million shares of IronNet had exchanged hands, meaning almost the entire float –a number that seems unbelievable considering the stock’s statistics.
- IronNet bust through three resistance levels at $10.60 and $11.40 and was attempting to break through the $12.75 level.
- Even though the stock is trading higher the relative strength index is still measuring at a comfortable level, which indicates the stock has the strength available to continue north.
- Bulls will want to watch for sustained big bullish volume on Thursday, otherwise IronNet may enter into a period of consolidation.
- Big bearish volume entering the stock would be a warning signal.
- Bullish traders already in a position could watch the eight-day exponential moving average on the 15-minute chart as a guide because the stock has been consistently trading above it on the timeframe.
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