IMAX breaks back below 100-day moving average
Imax Corporation (IMAX) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
IMAX finished the month 0.71% higher at 11.29 after losing $0.35 (-3.01%) today, notably underperforming the S&P 500 (0.77%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (IMAX as at Jul 31, 2020):
Friday's trading range has been $0.42 (3.63%), that's below the last trading month's daily average range of $0.80. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for IMAX.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Bearish Short Candle and the Black Candle which are both known as bearish patterns.
Prices are trading close to the key technical support level at 10.83 (S1). The stock closed back below the 100-day moving average at 11.53. When this moving average was crossed below the last time on Wednesday, IMAX actually gained 3.74% on the following trading day. After having been unable to move lower than 11.06 in the prior session, Imax found buyers again around the same price level today at 11.14.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Selling might accelerate should prices move below the nearby swing low at 10.83 where further sell stops could get activated. Further selling might move prices lower should the market test June's close-by low at 10.31.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Though it is usually interpreted as neutral, it has actually shown to be bullish for Imax. Out of 698 times, IMAX closed higher 51.29% 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 52.72% with an average market move of 0.38%.