Ironwood Pharmaceuticals in a max squeeze


July 2021


Alex Cole

The healthcare sector $XLV is outperforming on a relative basis as we've seen from the GoNoGo RelMaps in our Flight Path reports.  Ironwood Pharmaceuticals could be well positioned therefore to generate alpha.
The GoNoGo Chart below shows that $IRWD is in a "Go" trend and that currently the GoNoGo Oscillator is riding the zero line causing the climbing grid of the GoNoGo Squeeze to rally to its extreme.  This shows that momentum has cooled and we will wait to see if the oscillator finds support at the zero line in which case we would be able to say that momentum has come back in the direction of the trend.  This could lead to further strength in price.