Interactive Brokers (IBKR) Resuming Late 2020 Advance?

Conclusion, Investment Implications, Strategy

Interactive Brokers Group, Inc. (IBKR) is amid favorable conditions to resume its November 2020 Strategic advance from major underlying support near $63.32, which has been tested and held over the past week. A sustained rise above this area would target an additional 14% rise to $75.00 per share. This is an Asbury Value trade idea.

Analysis and Rationale

Interactive Brokers Group, Inc. (IBKR) operates as an automated electronic broker worldwide. It specializes in executing and clearing trades in stocks, options, futures, foreign exchange instruments, bonds, mutual funds, and exchange traded funds (ETFs). The company custodies and services accounts for hedge and mutual funds, ETFs, registered investment advisors, proprietary trading groups, introducing brokers, and individual investors. In addition, it offers custody, prime brokerage, securities, and margin lending services. The company serves institutional and individual customers through approximately 135 electronic exchanges and market centers. Interactive Brokers Group, Inc. was founded in 1977 and is headquartered in Greenwich, Connecticut.

The rightmost green highlights in Chart 1 below show that IBKR is currently rebounding from a Jun 18th test of its 200-day moving average, a widely-watched major trend proxy currently at $63.32 while also rebounding from monthly (our Tactical time period) oversold extremes. The other green highlights show that similar oversold extremes closely coincided with every Tactical bottom since September 2020. These conditions set up a low-risk buying opportunity to buy a significant correction in an uptrending stock just above major support, with a favorable risk/reward profile. If the current major uptrend in IBKR is still valid, this is where it should resume.

Chart 1

A sustained rise above the $63.32 area would indicate this is indeed the case and would target an additional 14% rise to $75.00 per share.

Table 1 below shows that considering the aforementioned upside target and a protective stop placed below the $63.08 area, a long entry price of $66.09 would provide a 1:3.0 risk/reward ratio (risking $1.00 to make $3.00) with an initial risk of 4.6%.

Table 1

Click Here for a table containing all of our current stock, ETF and index ideas.

Please consult the table showing our Asbury 6 key market metrics to help determine if this investment is suitable for you.

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Interactive Brokers (IBKR) Resuming Late 2020 Advance?

Conclusion, Investment Implications, Strategy

Analysis and Rationale

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Interactive Brokers (IBKR) Resuming Late 2020 Advance?

Conclusion, Investment Implications, Strategy

Analysis and Rationale

Asbury Research

Asbury Research subscribers get more detail on our latest analysis, and updates to our quantitative models

Schedule A 15-Minute Zoom Meeting With Us To Get More Information >>>

Asbury Research subscribers get more detail on our latest analysis,
and updates to our quantitative models