Technical Summary: The second half of 2016 was not a good time for the IFT stock as it pulled back from all time highs at around $3.40 and bottomed out around $2.60 (marked on chart). Since that time the stock has shown good resilience and has made a series of higher lows as it has slowly fought its way to a 52-week high. At this stage the stock is setting itself up quite nicely as it forms a flat base. There is clear overhead resistance highlighted by the black line. The stock has retreated each time it has approached this mark. This indicates an area of selling supply.
This has left us with a pretty obvious buy zone. Ideally we would like to see volatility (price range) contract and volume to dry up before the stock moved into the buy zone on large buying volume. The dry up in volume before this move would indicate that selling supply has dried up.
