IMAX still stuck within tight trading range
Imax Corporation (IMAX) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
IMAX finished the week 10.92% higher at 12.60 after losing $0.09 (-0.71%) today, underperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (IMAX as at May 22, 2020):
Friday's trading range has been $0.53 (4.18%), that's below the last trading month's daily average range of $0.67. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for IMAX. Prices continued to consolidate within a tight trading range between 11.68 and 12.75 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the prior day's range, unable to trade above the previous day's high or below the prior day's low forming an Inside Bar. After moving higher in the previous session, the share closed lower but above the prior day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Hanging Man.
After having been unable to move above 12.75 in the previous session, the stock ran into sellers again around the same price level today, failing to move higher than 12.69. The last time this happened on Wednesday, IMAX actually gained 3.59% on the following trading day.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying might speed up should prices move above the close-by swing high at 12.75 where further buy stops could get triggered. Selling might accelerate should prices move below the nearby swing low at 11.96 where further sell stops could get activated. Further buying might move prices higher should the market test April's close-by high at 12.90.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Hanging Man" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Imax. Out of 69 times, IMAX closed higher 59.42% 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 56.52% with an average market move of 0.25%.