Penny Stock INAR is Positioned in the Middle of a Large Trading Range

A trader friend of mine pointed out INAR to me the other day.  After he first mentioned it I looked at it only briefly and concluded that it needed to do some more work after the initial early August breakout type move on huge volume.   But now I am looking at it a bit closer and this penny stock might have some potential.

It appears clear from looking at the penny stock chart of INAR that the big spike rally in mid May was preliminary demand.  Then we saw a sell off and a retest of the .001 level which INAR was completed successfully.  Price was able to hold the double bottom without breaking down below.

Now we are seeing another attempt at a rally on huge volume.  After the volume and price spike after a week ago INAR has settled down into a small sideways  trading range.

I would really like to see INAR trade and hold sideways for a bit longer without breaking down much at all.  If it can do that then it may have a decent shot back up towards resistance at .008 which I consider to be an ideal exit point.

The fact that INAR failed to break out the lows of .001 on the double bottom retest implies to me now that it wants to take a shot at taking out the .008 range just like a tiger who tries to get out of the right side of his cage, but can’t , then oscillates to the left side of the cage to see if it can get out that way.

Penny stock INAR clearly broke through the blue down trend line on substantial volume and a confirmed price break and sign of strength.

So now it is up to INAR to prove itself and hold sideways as horizontally as possible so it can work off the overbought condition and get some legs for a run at .008.