INMD has preannounced revenue expected to be above previous estimates. I have this on my watchlist for a breakout to the upside. It is clearly in a stage one consolidating after a brutal selloff. I have an alert set at R-1 for a breakout of this VCP area. Keep in mind if you like this idea that there is a lot of overhead resistance. I’ve marked areas I think are the most relevant on the chart. My thinking is that IF it breaks out of R-1, R-2 is close by. If it can get over $42 area it may run to around $50 before it needs to digest the overhead. All TBD. Ideas, not investing / trading advice.
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Looks like this is a sell the news right out of the gate. Still on watchlist. This could be a shakeout before a breakout. TBD. However, the volume has already exceed the daily average and we are only 35 minutes into the trading day. I'm now watching on a 5 min chart for a possible reversal. to the upside.
Trade active
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I've turned this into a day trade now. In at $34.97 with a stop just below today's low. Very tight stop with a great RR... TBD.
Trade closed: stop reached
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Day trade did not work. Stopped for a small loss. Still on watchlist.
thanks for the chart. what do you see now. i see somewhat of a double top and im afraid its going to drop to the 32 level. thanks
jaxdog
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@spoll9195, It's not showing much if any strength. Earnings on Tuesday Feb 14. That should get this going one way or the other.
spoll9195
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@jaxdog thanks for the reply. it had the breakout after earnings but has retraced 20% any help would be appreciated. is this option expiration driven?
jaxdog
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@spoll9195, INMD I too am surprised that it seems to have fallen on it's face. I've seen a couple of articles suggesting the reason for the drop is a possible unfavorable economy ahead and perceived growth deceleration. I can't give you advice but if I were in the stock and had not sold yet (and I would have), I'd wait to see how it behaves at the 30 week MA. If it closes below that it would be lights out for me. Just a side note, none of us can control what a stock will do, our job is to look for set-ups that favor our trading style. Once in a stock all you can have control over is "risk management." This is accomplished by setting stop losses. I hope this helps.
spoll9195
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Thanks for your help!! Much appreciated
jaxdog
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@spoll9195, Looks like it over shot the 30 week MA (WMA) for 1 day but now back over. The 30 WMA is very important to my trading. It's still on my watch list and if it holds above for a bit I may start a new position. I like to evaluate every set-up and position on a daily basis by asking myself; would I take this trade today. If not I either sell or stay out of the trade.
shark8585
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Hey, any update? I think it can blast to 50 soon!
jaxdog
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@shark8585, INMD still showing sellers in the high $38 range. Good news is that it held the up slopping 30 wk ma (this daily chart shows the 150 day in white very similar to 30 wk) It's possible to have run into earnings which are in about 8 days. For me, it's not a trade until and unless it can get over $39 and preferably $40 and hold. For me there is no hurry. If it's going to take off and run , it will do it over $40, IMO. Thanks for asking.
spoll9195
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thanks for the chart. what do you see now. i see somewhat of a double top and im afraid its going to drop to the 32 level. thanks
thanks