Imax Corp. (Friday’s close US$21.59) declined from $43.62 in 2015 (not shown) to $18.15 in 2017 (A), formed a horizontal trading range mostly between $18 and $26 and then, except for a brief dip during the 2020 “flash-crash” (B), created another trading range mostly between $10 and $16 (dashed lines). This price action produced a bullish technical pattern known as a Delayed Ending.
The recent rise above this pattern (C) and above the long-term falling trend-line (dotted line) suggests a breakout and the start of a new uptrend; however, only a sustained rise above $26-$27 would confirm it.
There is good support near $19-$20; only a sustained decline below the 40wMA (currently near $17.50) would cancel the upside potential.
A rise above $26-$27 would signal Point & Figure targets of $31 and $34. Potentially higher targets are visible.
Monica Rizk is the senior Technical Analyst and Ron Meisels is the president of Phases & Cycles Inc. (www.phases-cycles.com). And he tweets at @Ronsbriefs. They may hold shares in companies profiled.
Chart source: www.decisionplus.com
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