Patience with IMAX

Published on Wednesday, 08 February 2012 09:04 Written by TradersHuddle Wire

New York, February 8th (TradersHuddle.com) - Shares of Imax Corporation (NASDAQ:IMAX) closed the trading session at $22.53 near its 200 day moving average currently set at $22.93. IMAX's price action is below this important level, which makes the stock difficult to buy, as there will certainly be resistance as it approaches its 200 day moving average.

Imax Corporation (NASDAQ:IMAX) specializes in motion picture technologies and large-format film presentations. The company designs and manufactures projection and sound systems for large-screen theaters and designs custom attractions, including motion simulation theaters, for both large-scale attractions and smaller venues.

Latest price action range, defined by a peaks and troughs algorithm places calculated support at $20.29 and calculated resistance at $22.52. These levels are being closely watched by traders, as they provide great reference points for the latest price dynamics in IMAX shares.

Traders should evaluate their trade if they want to establish a position on IMAX given the resistance could materialize as the stock approaches the 200 day moving average. A trade might materialize as the stock manages to break this important level, as it could be used as support going forward, however until the break materializes, traders need to exercise patience. Other levels that traders will be evaluating are the ones defined by the peak and troughs algorithm that provides great price action reference points.