I was scanning stocks for chart patterns and came across Immunogen Inc. (IMGN) with a double-top already formed.
IMGN has been trading in a downward channel since February 2021 and shows no sign of stopping yet.
The price has reached a major support level of about 4.97, with only one major breach back in May. On three occasions it has dipped below slightly to reach 4.48 - 4.26.
Due to the major double-top chart pattern, I expect the 4.97 support level to be breached again and the price will likely reach 4.48 in the next several days, and possibly 3.48 sometime in January.
Of course, the price could bounce and follow the support line for a bit longer, or even continue higher. I'm betting on a move lower as the pattern completes its symmetrical shape.
Disclaimer: I am not a financial advisor, and the above statements are not investment advice. My comments are only intended for educational purposes. You are solely responsible for your own trading decisions.
IMGN has been trading in a downward channel since February 2021 and shows no sign of stopping yet.
The price has reached a major support level of about 4.97, with only one major breach back in May. On three occasions it has dipped below slightly to reach 4.48 - 4.26.
Due to the major double-top chart pattern, I expect the 4.97 support level to be breached again and the price will likely reach 4.48 in the next several days, and possibly 3.48 sometime in January.
Of course, the price could bounce and follow the support line for a bit longer, or even continue higher. I'm betting on a move lower as the pattern completes its symmetrical shape.
Disclaimer: I am not a financial advisor, and the above statements are not investment advice. My comments are only intended for educational purposes. You are solely responsible for your own trading decisions.
Comment:
As of today, December 29th, a bear trap has completed forming. I still expect the price of IMGN to drop towards 3.48 in the new year. If the symmetry continues, it will be bouncing somewhat sideways over the next several days.
Comment:
Today is January 9th, and I hadn't looked at IMGN in over a week. I'm always amazed to see these bear traps form after bouncing off a support level, retesting a resistance level, then continuing to head lower. Now that the price is back on its bearish track, I'm still expecting it to reach 3.48 in the next several days.
Comment:
It appears that we only got halfway to the target and IMGN is caught up in the general market rally. I can still see it reaching 3.48. It may take some time. That double-top still looks ominous.