IMAX breaks above 20-day moving average for the first time since December 20, 2019
Imax Corporation (IMAX) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
IMAX ended the week 3.79% higher at 17.82 after gaining $0.21 (1.19%) today, significantly outperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Closing above Thursday's high at 17.72, the market confirmed its breakout through the prior session high after trading up to $0.18 above it intraday.
Daily Candlestick Chart (IMAX as at Feb 14, 2020):
Friday's trading range has been $0.40 (2.28%), that's below the last trading month's daily average range of $0.59. 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.
Four candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns and two bearish patterns, the Bearish Hikkake Pattern and the Last Engulfing Top Pattern. The last time a Bearish Hikkake Pattern showed up on February 4th, IMAX actually gained 5.04% on the following trading day.
The share managed to close above the 20-day moving average at 17.74 for the first time since December 20, 2019. Prices are trading close to the key technical resistance level at 18.07 (R1). After having been unable to move lower than 17.48 in the previous session, Imax found buyers again around the same price level today at 17.50.
Though the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the nearby swing high at 18.08 where further buy stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Imax. Out of 122 times, IMAX closed higher 58.20% 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 59.84% with an average market move of 1.26%.