Innodata reiterates 40%+ revenue growth outlook as Rahul Singhal is set to become CEO on September 30
Reconfirmation of Innodata's projected revenue growth of over 40% and news of Rahul Singhal's appointment as CEO on September 30.
The current price of $65.48 is positioned in the middle between the support level ($54.36) and the resistance level ($71.98), indicating a lack of direction. Therefore, we will consider buying cautiously while confirming a clear trend breakout.
Based on the current price of $65.48, I will look to take profits if it attempts to break through the resistance level of $71.98, or I will cut losses if the downside risk increases and it falls below the support level of $54.36.
RSI(14) 62.4, moving averages are misaligned, trading volume is 1.83 times the 20-day average, and the recent 7-day volatility is +16.8%.
Despite the positive news of the CEO's appointment and the reaffirmation of revenue growth prospects, along with an increase in trading volume (1.83 times the 20-day average), we anticipated a breakout to the upside. However, the stock closed with a loss of -11.3% as the ambiguous position between support and resistance levels, along with the downside risks implied by the misaligned moving averages, materialized.
When the current price is positioned between support and resistance levels and lacks direction, we will refrain from making hasty entries and will strictly apply a conservative approach by holding off on trading until a clear breakout or support rebound signal is confirmed.