Technical outlook – Imdex Limited (IMD) gave the market a sudden surprise last Friday after the upside challenge towards $1.50 was rejected and closed to a ‘bearish outside range day’ (engulfing candlestick). There are dozens of bearish reversal patterns, and one of the most common is the bearish outside range day. This reversal pattern can form with one or more candlesticks; most require bearish confirmation. The actual reversal indicates that selling pressure overwhelmed buying pressure. Without confirmation, many of these patterns would be considered neutral and merely indicate a potential resistance level at best. However, viewing the technical set-up a break of the 50-midway point to the 3-day RSI lookback, along with the MACD breaking through the 0.00 axis, should ignite the move lower and give a potential target of $1.35. Reassess from there.
Company Overview – Imdex Limited (IMD) is a provider of drilling fluid products, advance downhole instrumentation, data solutions and geo-analytics services to exploration, development and production companies in the minerals and oil and gas sectors worldwide. Former Names:
Imdex NL (IMD), 09/08/1995.