INAP Stock: Constructive Price Action
FOREX INVESTORS BUZZ Internap Stock I was doing my daily scan of investments, which involves looking for compelling investments with constructive stock charts, and I was led straight to Internap Corp (NASDAQ:INAP) stock, and I am quite compelled to say the least.
This small-cap company sports a $327.0-million market cap and operates as a high performance internet infrastructure provider. It has a footprint in the growing cloud computing space, and it offers a number of optimization solutions. The company is trading at 1x sales, which is very attractive, but it is the company’s stock chart that has really piqued my interest. The price action on the Internap stock chart is simple, easy to discern, and is suggesting that INAP stock is now staging an advance, so higher stock prices can now be expected.
The following Internap stock chart illustrates the constructive price action that has piqued my interest in INAP stock.
This INAP stock chart has been modified in order to highlight the constructive price action.
Constructive price action consists of an alternating two-wave structure. This two-wave structure contains impulse waves, which are highlighted in green on the stock chart above, and consolidation waves, which are highlighted in purple on the stock chart above
In late June, INAP stock exited the consolidation wave in an upward direction, suggesting that an impulse wave was in development. The Internap stock price proceeded to forge a new 52-week high, which reinforced the notion that an impulsive advance was in development.
Aside from suggesting that the investment is in a bullish advance, this wave structure can be used to project a potential price objective for the current impulse wave that is in development. A potential price objective can be created based on the assumption that impulse waves that are separated by a consolidation wave have an above-average tendency to mirror each other in terms of their length. In this case, the preceding impulse wave was $2.35 in length, and if I apply the metric to the current impulse wave that is in development, it creates a potential price objective of $5.35.