InMode Stock Discussion

Needham suggests InMode, a key player in body contouring, could gain from market trends. The company also promotes the Morpheus8 skin-tightening system. These findings mirror sales trends reported by Botox producer Allergan, predicting an 8% YoY global sales growth for cosmetic use by 2024.

Past few sharing of anaylsis on INMD were spot on!
- Pre-earnings guidance on 12 July ==> checked!
- Target of 45 ==> checked!
- Charted the rally since higher low on 2nd June ==> checked!
That's why observe, react, don't predict! Let the price action guide you!
Significance of Wednesday
- 40 has been a resistance past few run up
- Wed, bulls tactically gapped up over 40 at market start! ==> triggered so many stop losse...

- Have been charting the rise towards earnings pre-guidance which INMD tends to do 2 weeks prior to actual earnings. And we are in the usual run up to that day.
- A positive reaction will see a jump up of good magnitude
- Bull flag had been forming well since the higher low in early June
- MA5/MA20 are all up and there is upside to go in this rise
- Fib extension of bull flag points to Fib 1.0 of 39 (broken) and next i...

Technicals
- Bull flag in the midst of forming
- Bounced off 35.5
- Fib extension means 1.0 at 39 and 1.618 at 41
- 30mins chart shows controlled buy and sell with a good base formed at 35
- An even stronger base at 33/34
My Plays
- Have been selling multiple puts since the low of 1 June (lower strangle)
- Have been holding back on more selling more calls until upper end is reached (targeting 39)
- Any pull backs to 35 I load up more sol...

- INMD tends to have guidance to earnings 2 weeks prior. Current earnings is slated for 27 July, which means guidance could come out next week.
- Current price action has been positive and a good bounce off the range breakout and backtested at 35
- Note recent earnings reaction was high of 38.
Positive reaction
- Bull flag play out to 39/40 and possibly 42.44
Negative reaction
- Bring it ba...

- Cup formed at top of 38
- Handle formation now in progress
- Handle formation can pullback to as low as 35
- Break below 35, does not look too good
- If bull flag plays out, targets are good for 40 (fib extension 1.0) and 42 (fib extension 1.618)
My Watch/Plays
- Multiple sold puts and calls to hold
- Pullback and hold at 35 and above, will increase more sold puts positions
- Will not sell any more calls until bull flag plays out or break below 35 suppor...

Background - INMD likes to pre-release earnings guidance 3 weeks before actual release. The current projection is 27 July, and working backwards means the pre-guidance likely to be around 7 July.
Moves - Often, INMD either moves upwards towards pre-guidance or drops before pre-guidance. If it goes up, it often comes down after. If it goes down leading towards, it goes up after.
Charts/Price action
- Can it form a higher higher above 38?
- If it does, it may come down t...

- Bull flag formed since 1st June low had played out well (exactly as per previously shared)
- It remains in the buy continuation channel with consolidation Wednesday after the CPI/PPI/FOMC drama
- Long term buy channel remains resistance at 44/45 and support at 31/32
- Upcoming pre-earnings release early July (so expecting a run up to it)
My Watch/Plays
- Sold puts strike 25 27.5 30 32.5 35 all matur...