IMAX unable to break through key resistance level
Imax Corporation (IMAX) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, IMAX finished Wednesday at 13.61 edging higher $0.02 (0.15%), outperforming the S&P 500 (-0.46%). Trading $0.34 higher after the open, Imax was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Monday, IMAX actually gained 2.03% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (IMAX as at Sep 16, 2020):
Wednesday's trading range has been $0.57 (4.17%), that's below the last trading month's daily average range of $0.81. 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. Prices continued to consolidate within a tight trading range between 13.23 and 14.25 where it has been caught now for the last three trading days.
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. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
Prices are trading close to the key technical support level at 13.06 (S1). Unable to break through the key technical resistance level at 13.81 (R1), the market closed below it after spiking up to 14.02 earlier during the day. The failure to close above the resistance could increase that levels significance going forward.
While the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the close-by swing high at 14.25 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 13.23 where further sell stops might get triggered.
Among the six 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 297 times, IMAX closed higher 50.17% 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 56.23% with an average market move of 0.67%.