IMAX closes above its opening price after recovering from early selling pressure
Imax Corporation (IMAX) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, IMAX finished the month -11.1% lower at 11.21 after edging higher $0.08 (0.72%) today, underperforming the S&P 500 (1.54%). Trading up to $0.17 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 11.19, the share confirmed its breakout through the previous session high after trading up to $0.30 above it intraday.
Daily Candlestick Chart (IMAX as at Jun 30, 2020):
Tuesday's trading range has been $0.49 (4.39%), that's below the last trading month's daily average range of $0.78. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for IMAX.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top. The last time a Bullish Spinning Top showed up on June 23rd, IMAX actually lost -4.15% on the following trading day.
Unable to break through the key technical resistance level at 11.25 (R1), the market closed below it after spiking up to 11.49 earlier during the day. The failure to close above the resistance could increase that levels importance going forward.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "2 Consecutive Higher Closes" stand out. Its common bullish interpretation has been confirmed for Imax. Out of 295 times, IMAX closed higher 50.51% 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 55.93% with an average market move of 0.53%.