Imax Corp. , declined from $15.49 in early-2005 to $3.78 in late-2006 (A-B), settled into a horizontal trading range between $3.50 and $8 (see dashed lines) and remained below a long-term descending trend line until very recently (C - see dotted line). The recent rise to $8.99 confirmed the breakout from the large base. Although a better buying opportunity may occur near $6.50, only a decline below ±$5.50 would reverse the current up-side potential.
Point & Figure measurements provide targets of $10 and $12 (22-per-cent and 46-per-cent appreciation potentials from current levels). The base from 2006 to 2009 supports higher targets.
Ron Meisels is a contributor to the www.NA-marketletter.com web site. Monica Rizk is the senior Technical Analyst for Phases & Cycles Inc. They may hold shares in companies profiled. Please see the site for a glossary.
Chart source: www.decisionplus.caReport Typo/Error