Integrated Research Share Price Up on Record Profits (ASX:IRI)

Shares of Sydney-based communications and payments company Integrated Research Ltd [ASX:IRI] are up over 80% from the March low.

The IRI share price is trading at $4.03 at the time of writing, Integrated Research is presenting strong financial results for the year.

ASX IRI Share Price Chart 1

Source:Optuma

What’s happening at Integrated Research?

Integrated Research specialises in performance management software for critical IT infrastructure while boasting a stable of top-tier partners such as Microsoft, Bankwest, Ford, and many more. Integrated Research is an important link in the chain of global computing.

The reliance on these systems is more important than ever in the times of the COVID-19 pandemic.

This helped Integrated Research record some fantastic results for the FY20 period.

Total revenue is expected to be in the range of $109.5 to $111.0 million, representing growth of 9–10%.

Profit after tax for the year is expected to be in the range of $23.6–24.2 million compared to $21.9 million for the prior year, representing growth of 8–11%.

While this all looks good, can the push up be sustained?

 Where to from here for Integrated Research…

Comparing Integrated Research to its peers — such as Xero Ltd [ASX:XRO] and WiseTech Global Ltd [ASX:WTC] — all have made a significant push up from the low in March, recovering well after the initial shock of COVID-19.

Where Xero and Wise look to now be just coming off the boil — Integrated Research is sitting at the level of a previous all-time high, made back in 2018 (red line, bottom chart).

ASX IRI vs ASX XRO vs ASX WTC - share price chart

Source: Optuma

This technical occurrence presents an altogether different challenge for the movement of price from here, as previous all-time highs can be a very strong resistance level.

With the price trading at $4.03 at the time of writing, if the up move were to have to momentum to break through the double top, then levels of $4.15 and $4.55 may provide future resistance. It’s worth nothing that the move up taking place on declining volume may be a sign of a weakening move.

Integrated Research Share Price Chart 3

Source: Optuma

The contrast is the double top controls the move and turn price down, should this happen the fall from double tops tend to be significant.

As can be seen on the chart below, taking ranges of 25% increments on the downside, each level coincidentally happens to line up with a naturally-forming support level.

Integrated Research ASX IRI Share Price Chart 4

Source:Optuma

Integrated Research could be an interesting one to watch in the coming months and should the fall take place, best to sit back and watch.

As the old saying goes — never try to catch a falling knife.

Regards,

Carl Wittkopp,
For Money Morning

PS: Four Well-Positioned Small-Cap Stocks: These innovative Aussie companies are well placed to capitalise on post-lockdown megatrends. Click here to learn more.


Carl Wittkopp writes for Money Morning and has a diploma in Financial Planning. He specialises in technical analysis.

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