Friday, July 13, 2007

Update IMAX

IMAX continues to consolidate on low volume. On the daily time frame we are resting on the previously broken 200 DMA at $4.42. On the 10 minute chart we are range bound between $4.45 and $4.50. After a strong move higher, subsequent consolidation at support is most often appreciated prior to a sequential move higher. Although it should be noted that a range bound stock can not only break out, but also break down. A break below $4.45 on higher volume would be a sell signal, where as a break over $4.50 on higher volume would be a buy signal.

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