IMAX breaks below Thursday's low
Imax Corporation (IMAX) Technical Analysis Report for Mar 15, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, IMAX ended the week 1.31% higher at 23.13 after losing $0.23 (-0.98%) today, strongly underperforming the S&P 500 (0.5%). Trading $0.18 higher after the open, the share was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Thursday's low at 23.25, the market confirmed its breakout through the prior session low after trading up to $0.15 below it intraday.
Daily Candlestick Chart (IMAX as at Mar 15, 2019):
Friday's trading range has been $0.53 (2.26%), that's slightly below the last trading month's daily average range of $0.68. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IMAX.
Even with a strong opening the stock closed below the previous day's open and close, forming a bearish Engulfing Candle. The last time this candlestick pattern showed up on February 11th, IMAX actually gained 1.32% on the following trading day. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
Unable to break through the key technical resistance level at 23.50 (R1), Imax closed below it after spiking up to 23.63 earlier during the day. The failure to close above the resistance might increase that levels significance going forward. After having been unable to move above 23.65 in the prior session, IMAX ran into sellers again around the same price level today, failing to move higher than 23.63.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Imax. Out of 586 times, IMAX closed higher 50.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 53.75% with an average market move of 1.35%.