Monday, July 16, 2007


IMAX continues to demonstrate strong consolidation, with three candle sticks printed firmly on the 200 DMA. Today the stock showed some strength as it attempted to test its highs from last Tuesday, near the range of $4.65. While it was unable to break to new highs, the stock did close in a rather perfect cup & handle formation closing exactly on the 50 DMA at $4.55.

Many technicians will argue that the cup & handle is reserved solely for longer time frames spanning weeks or months, but even during the shorter 10 minute chart the supply and demand dynamics are identical.

For conformation we still need a high volume break through resistance at $4.60-70. This could occur tomorrow during an opening gap up, or with a long candle stick which closes above $4.60. A possible catalyst could be stellar HP results which were released late in after hours. Although, for the stock to really move the company needs to file its tardy financials.

As for MVIS all I can say is the ascending triangle formation is still in place. However, today's action makes me slightly apprehensive that we might get a failed formation. Time will tell.

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