IMAX Closing in to Resistance

Published on Thursday, 09 February 2012 07:28 Written by TradersHuddle Wire

New York, February 9th (TradersHuddle.com) - Shares of Imax Corporation (NASDAQ:IMAX) are trading very close to calculated resistance at $22.52 with the current price action closing at just $21.89 placing the stock near levels that make it difficult to buy.

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.

IMAX's current stock range is defined by current calculated support defined at $20.29 and by the resistance level at $22.52, the stock is clearly over-extended from support, making it difficult to establishing new long positions at this level.

Traders don't have a clear entry point for IMAX, as the stock is well above support, however, as the stock pulls back towards $20.29 it will definitely provide a reference point to establish a trade. On the other hand if the stock decides to break above resistance level at $22.52 then traders will get an opportunity to enter IMAX stock by establishing a position as the stock moves to a higher range.