IREN Limited (IREN) Technical Analysis

Price Action Analysis

Overview

• IREN has shown a recent improvement in price action after a mid-December trough, with a move back toward the mid-$50s in early January. The current price sits around the low-to-mid $50s, placing it above short- and mid-term moving averages and within a broader range seen over the last several quarters.
• On the daily chart, price has transitioned from a prior basing/rounding move lower to a clearly bullish tilt as it reclaimed the $50 level and pressed higher into the mid-$50s. The immediate action suggests a short-term up-leg within a longer-range context.
• On the weekly chart, the stock remains within a longer-term range with resistance historically evident in the upper-$60s to ~$70s and support in the low- to mid-$40s. The current price is near the middle of that longer-range zone, indicating potential for a further move higher if momentum persists.

Price action details

• Daily chart behavior:
  • Recent candles reflect a sequence of higher highs and higher lows since early January, with the latest sessions sustaining above the near-term level around $50.
  • A bullish tilt is supported by the close above the $50 area, signaling potential for continuation toward the next overhead zone.
  • Candlestick structure in the latest sessions shows constructive buying pressure, with a notable move higher on stronger intraday activity.
• Weekly chart behavior:
  • The price is trading higher than the mid-range seen in the last several weeks, but still considerably below the longer-term resistance near the prior highs of the recent multi-year span.
  • The weekly timeframe confirms a coexistence of near-term strength with the broader range dynamics, suggesting that sustained gains would need to clear key resistance around the prior highs.

Candlestick patterns

• Latest daily candles reflect a bullish bias (green-ish candles with higher closes), consistent with a short-term upside path as the price pushes back toward mid-$50s after testing the $50 support.

Volume observations

• Volume has shown upticks on the recent up-moves, aligning with typical price-advancing behavior and supporting the constructive price action in the near term.
• The volume pattern suggests at least some accumulation during the rebound from the December trough, with no clear signs of distribution overpowering the current move.

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Technical Indicators

Indicator	Latest Value	Interpretation
Current Price	$52.99	Trading above the near-term 50-day reference, supportive of a continued bullish bias.
50-day Moving Average	$47.50	Price is comfortably above the 50-day MA, indicating short- to mid-term strength.
200-day Moving Average	$28.70	Price well above the 200-day MA, signaling a strong long-term uptrend context.
RSI (14)	69.0	Near overbought territory; suggests watchfulness for a potential short-term pullback or consolidation.
MACD	1.00	Positive momentum; MACD above zero, with a meaningful gap to the signal line.
MACD Signal	-0.60	Indicates the MACD line is well above the signal line, reinforcing bullish momentum.
MACD Histogram	1.60	Positive histogram confirms ongoing upside momentum.

Notes on readings

• Price comfortably above the 50-day MA and far above the 200-day MA point to a bullish structural context.
• RSI near 70 implies near-term upside may be tempered by a risk of short-term consolidation or a minor pullback if price approaches overbought levels.
• MACD readings corroborate a bullish momentum backdrop, with a healthy positive gap vs. the signal line.

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Volume & Momentum Analysis

• Near-term momentum is constructive, with higher volumes accompanying up-days in the latest sessions. This pattern supports the case for a continuation of the bounce from the December lows, provided price can sustain above key levels.
• The combination of price trading above the 50-day MA and positive MACD, together with rising volume on rallies, suggests buyers are in control in the near term.
• However, the proximity of RSI to overbought territory signals a risk of short-term consolidation if momentum slows or if the price encounters a nearby resistance cluster.

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Key Buy/Sell Levels

Trendlines drawn (horizontal reference lines placed to extend forward):

• Resistance: around $60
• Near-term support: around $50
• Deeper support: around $40

Current price: $52.99

Buy zone analysis (with touched status and distance from current price)

• Buy Zone A: $60.00 (resistance level)

  • Has this zone been touched? No (price is currently below this level).
  • Distance from current price: ~$7.01 above current (60.00 − 52.99) ≈ 13.2%.
  • Rationale: If price advances toward the $60 area, this zone represents a salient resistance shelf; a move through could signal continuation to higher zones, potentially accompanied by rising volume and positive momentum.

• Buy Zone B: $50.00 (near-term support)

  • Has this zone been touched? Yes (recently tested near $50, e.g., around $50.30 on recent sessions).
  • Distance from current price: currently touched; distance is 0 for the lower range; minor pullbacks toward this zone would remain around the current level (no distance to report for a touched zone).
  • Rationale: A pullback toward this level could present a low-risk entry if momentum remains positive and volume supports a bounce.

• Buy Zone C: $40.00 (deeper support)

  • Has this zone been touched? Yes (historical support near this level; recent price action has not closed below this exact level in the very near term, but intraday moves have dipped toward the low $40s in the past).
  • Distance from current price: not currently close; approximately $12.99 lower, or about 24.6% away.
  • Rationale: A larger retracement toward this zone would align with a longer-term test of the broader support area, potentially offering a more attractive risk/reward if the trend remains bullish on the higher timeframes.

Notes on levels interaction

• The immediate zone around $50 aligns with a confluence of support from recent price action and the 50-day MA, making it a practical near-term reference for pullback entries if market conditions permit.
• The $60 level acts as a meaningful upper bound from a charting perspective, reflecting a prior consolidation/highs region and a potential hurdle for continued strength.
• The $40 zone embodies deeper risk protection, aligning with the lower end of the recent longer-term range and likely to involve higher volatility if tested.

Trendline context

• The horizontal levels are anchored in familiar price action regions: 60 (resistance), 50 (near-term support / MA proxy), and 40 (deeper support). These align with previous breakout/retest zones and with observed volume patterns around recent up-moves.

How these levels relate to technical references

• Support at ~50 coincides with the 50-day MA, reinforcing the zone as a potential bounce point with a favorable risk-reward setup if price respawns here.
• Resistance around ~60 corresponds to a prior high-area where price faced selling pressure; a break above could invite acceleration if accompanied by above-average volume.
• The deeper ~40 region mirrors a broader support shelf seen in the last cycle, where buyers have previously stepped in, especially on negative re-tests.

Trendline extension notes

• The lines extended beyond the current time horizon provide a forward-look for potential consolidation above or below these levels. If price remains above 50 and breaks through 60 with momentum, the near-term bullish trajectory would be reinforced.

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Technical Outlook & Summary

• Price action context: The current setup shows near-term bullish momentum with price above the 50-day MA and continuing to trade in the mid-$50s after rebounding from December lows. The weekly backdrop suggests the stock remains within a larger range, with potential for further upside if resistance around $60 is cleared with sustained volume.
• Volume analysis: Recent volume supports the up-move, consistent with a constructive reaction to the recent price strength. A sustained breakout above $60 would likely require continued volume participation to validate a new higher-high sequence.
• Technical signals:
  • Positive momentum indicators (MACD above zero with a positive histogram) align with the price action.
  • RSI near overbought levels implies potential short-term consolidation or minor pullbacks; longer-term trend remains bullish as long as price stays above the major moving averages.
  • The price is trading well above the 200-day MA, underscoring a long-term bullish context despite the range-bound nature of the longer timeframe.
• Buy levels and strategy:
  • Near-term focus around $50 offers a practical pullback target with favorable risk-reward, given the proximity to the 50-day MA.
  • A confirmed breakout above $60 on strong volume would be a bullish signal for a move toward the next major resistance zone in the upper-$60s to low-$70s.
  • Deeper support around $40 provides a longer-term guardrail for risk management and potential major downside protection.

If you’d like, I can monitor for a potential break above $60 with a follow-up alert and provide a refreshed assessment on a close above/below key levels to reassess the trajectory.