IGR has been trading in a down trend over the past five months, which at this point remains intact. The price retraced close to a key band of support between $0.37 and $0.41, where support is likely to hold once again. A large bullish divergence between the price and the RSI indicator has formed throughout March and May 2012, suggesting that the stock might be approaching a turning point and that the downside from here is likely to be limited. Given the proximity to support we are comfortable to start accumulating. A buy signal will be triggered once dynamic resistance of $0.50 is broken. The potential longer term upside price target is towards $0.60. Accumulate.
IGR Price at posting:
46.5¢ Sentiment: Buy Disclosure: Held
