IREN stock was flat on Friday as sentiment on artificial intelligence stocks waned. It was trading at $46, where it has remained in the past few days. However, the stock may be on the cusp of a big move after forming a highly bullish chart pattern amid Anthropic deal rumors.
IREN Stock Has Formed a Highly Bullish Chart Pattern
The eight-hour chart shows that the IREN share price has crawled back in the past few days, moving from a low of $33 on December 16 to the current $46.
A closer look shows that the stock has formed an inverse head and shoulders pattern, a common bullish reversal sign. The head of this pattern is at $33, while the shoulders are at around $50. This pattern often leads to a strong bullish reversal over time.
IREN shares have also moved slightly above the 50-period Exponential Moving Average (EMA), while the Relative Strength Index (RSI) has pointed upwards.
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Therefore, the most likely IREN stock price forecast is bullish as traders wait for the upcoming earnings on February 11 this year. If this happens, the next key target to watch will be at the psychological level at $60.
However, a drop below the head section at $33 will invalidate the bullish view and point to more downside, potentially to $20, as we had predicted here.
IREN and Anthropic Partnership Rumors
A potential catalyst for the IREN is a potential data center deal with Anthropic, one of the biggest competitors to ChatGPT. In an X post, an anonymous user known as Sylent Capital noted that the two companies would announce a deal soon. The post attracted over 227k views.
However, the two companies have not announced a deal yet, and no major publication has published such a report. Email messages to IREN and Anthropic from Bankless Times were not answered.
Such a deal would be an important one for IREN, a company that is building massive data centers in the United States and Canada. It has already inked a major deal with Microsoft, and investors are looking ahead to the next big one.
Wall Street analysts are largely bullish on IREN, a company they expect will continue doing well in the coming years amid the data center boom.
The average estimate among analysts is that the stock will rise to $67. A year ago, the average estimate was for it to hit $19. Some of the most bullish analysts are from Citigroup, Compass Point, and UBS.
The bullish outlook is based on the fact that analysts expect the AI boom to continue and for the company to continue receiving more orders from large hyperscalers.
Another potential catalyst is the bullish Bitcoin price outlook. A strong bullish breakout would be bullish for the company because it makes most of its money mining Bitcoin. The most recent results showed that its mining revenue rose to $113 million from $49 million in the same period last year. Its AI cloud service revenue was just $2.7 million.
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