$IMAX Corp (IMAX.US)$ IMAX presents a moderate risk level fo...

Iwill TradeScared commented on a stock · Nov 1 09:33

IMAX presents a moderate risk level for a swing trader's portfolio. The company has shown profitability through recent earnings and strong financials, albeit with negative retained earnings, which indicates potential weaknesses in financial management or historical losses. Nevertheless, its current technical indicators show strength with clear support levels and a breakout past a key level. The overall sentiment and positive forecast from news outlets provide some reassurance, suggesting a manageable risk when considering trading this stock. While sector-specific risks are low, the volatile nature of the stock market inherently presents some risk, but the potential gains seem to outweigh these for a knowledgeable trader.

Support and Resistance Levels
Support Levels: After a breakout past $24.30, the stock shows clear support around the $22 level.
Resistance Levels: With IMAX's current high near $24.38, this creates an immediate resistance range around its 52-week high.
Importance: These levels are crucial for traders to establish entry and exit points, validate successful breakouts, and minimize risk through stop-loss tactics.

Strategy

Equity Allocated: 24.02%
Position Size: 98 quant
Entry Price: $24.50
Profit Price: $31.409
Stop-loss: $22.299
Risk-Reward Ratio: 1:3.14

Trading IMAX is recommended based on its solid score and established indicators. The stock demonstrates noteworthy potential for profitable trades given its technical and financial stability, making it an attractive choice in the current market environment.

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Iwill TradeScared

#unprofitable part time trader trying to make breakeven money aiming for consistent 5- 💯% or little more/trade.

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