ITRI Forms Deep Base, Stage 1→2 Transition with Cautious Sentiment

Posted on by Eben@CANSLIM Research
ITRI daily stock chart with 10, 20, 50, 150 and 200-day moving averages, volume and RS line versus SPY — CANSLIM Research

ITRI is transitioning from Stage 1 basing to an early Stage 2 advance, with the 30-week MA flattening and price holding above it. However, the current base is a deep 43.5% pattern with an elevated failure rate, and the stock remains 26.5% below its 52-week high. The overall sentiment is cautious as the trend template only passes 3 of 8 checks, though a recent 28.6% run with a shallow 5.1% pullback suggests some underlying strength.

As of 2026-08-14 · Close $101.56

Stage 1→2 (Basing / Early Advance) — 30-week MA flattening with price above it — basing ahead of a potential advance (30-week MA 6-week slope: -0.42%)

⚠️ Faulty cup warning: the base is 43.5% deep (above the 38–40% threshold). A correction this deep leaves heavy overhead supply — trapped holders from higher prices are likely to sell into any rally, raising the failure rate of a breakout from this base.

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