IMAX CORP (NYSE:IMAX) Shows High Technical and Setup Scores for Potential Breakout

For investors using technical analysis to find possible trades, the search often centers on two main points: which stock is in a solid trend, and when is the good moment to enter that trend? A methodical way to address these points involves looking for stocks that mix sound basic technical condition with a distinct, usable price formation. One way is to find securities with both a high technical score, showing a solid and confirmed upward trend, and a high setup score, which points to a time of sideways movement that might come before the next upward move. This pairing seeks to find breakout formations inside the market's top gainers.

A recent filter using this approach has pointed to IMAX CORP (NYSE:IMAX) as a stock showing these traits. The company, a top name in immersive entertainment technology, is now showing a chart that technical investors may find interesting.

Technical Condition: A High-Level Score

The base of any breakout trade is the basic condition of the stock's trend. IMAX gets a top technical score of 10 from ChartMill, putting it with the market's top gainers from a technical view. This high mark is not given easily and is formed on several main parts that verify a strong uptrend is active.

• Trend Agreement: Both the near-term and longer-term trends for IMAX are scored as good. This agreement across periods is a key sign of continued momentum and lowers the chance of a mixed signal.
• Relative Performance: The stock is doing better than 90% of the whole market over the last year and 89% of its group in the Entertainment field. This shows that its price rise is not just because of a climbing market but shows particular condition.
• Moving Average Backing: The stock's price is above all its main simple moving averages (20, 50, 100, and 200-day), and each of these averages is itself in a rising pattern. This makes a tiered support base under the price.
• Nearness to Highs: IMAX is trading close to its 52-week high of $39.98, a common trait of leading stocks in a sound uptrend.

This grouping of factors answers the "which stock" point clearly. A high technical score is needed for the breakout plan because it raises the chance that a move above resistance will keep going in the planned direction, instead of stopping quickly.

Setup Condition: Sideways Movement Before a Possible Move

While a solid trend is needed, it is not enough for a best entry. Buying a stock that has already made a big, long move can be unsafe. The "when to buy" is answered by the setup condition score, which looks for times of sideways movement or base formation. IMAX now has a setup score of 8, pointing to a sound pattern is developing.

The technical note says that prices have been moving sideways recently, with the stock trading in a band between about $33.00 and $39.98 over the last month. This halt in the uptrend lets the stock absorb its earlier gains and can prepare for a new breakout. The study finds a clear resistance point at $39.05 from a flat line on the daily chart. A clear move above this point could signal the restart of the main uptrend.

Also, the setup shows a clear risk control point. The note describes a key support area between $34.38 and $34.66, made by a mix of trend lines and moving averages. For a trader, this gives a sensible area below which to set a stop-loss order, setting the trade's risk from the start. The existence of this support is a main part of a sound setup, as it allows for a measured entry with a managed downside.

A Specific Trading Plan

From this study, the technical note proposes a possible trading plan. The suggested entry is a buy-stop order at $39.06, just above the found resistance. This order would only be activated if the stock confirms the breakout with its price action. The proposed exit (stop-loss) is at $32.99, below the recent sideways movement support. This plan creates a set risk of about 15.5% on the trade, which can then be used to decide position size based on a person's total portfolio risk level.

It is very important to know this is a shown case made from the technical factors, not a suggestion. Traders must always do their own study, think about coming company events like earnings, and change entry and exit points to match their own plan.

Finding Like Chances

The breakout setup in IMAX was found using a methodical filter that sorts for stocks with high technical and setup scores. This method can be repeated each day to find new possible chances as market states change. For investors wanting to see the present list of stocks fitting these rules, the Technical Breakout Setups filter is refreshed often.

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Disclaimer: This article is for information only and is not investment guidance, a suggestion, or an offer to buy or sell any security. The study is based on technical data and automatic scoring models. Investing has risk, including the possible loss of principal. Always do your own research and think about your money situation and risk comfort before making any investment choices. You can see the full technical note for IMAX here.