Saturday, July 29, 2017

IMA S.p.A. : chart framework.

About the chart of IMA, we can notice a strong uptrend that began on October 2014 and it is still valid, from area 25 EUR to area 85 EUR. The great fundamentals of the firm have supported the good stock performance : it means good management and good shareholders remuneration, anti-cyclical business, good (geographical) diversification and uncorrelation from macro-events and italian economy (low beta). 
For further info, visit the official website (section investor-relations).
Of course, we got some breaks but we can consider them as small retracements that didn't damage the bullish trend. As shown in the chart, we have a primary trend with a parallel channel broke in area 70 EUR that brought the stock to the secondary trend with its parallel channel. The uptrend is also confirmed by the overcoming of the resistances (and of the resistance trasformed into the support). 
Chart from Investing.com
Only with a break of area 85 EUR, it will be a continuation of the uptrend and only with a break of area 70 EUR, it will be a change in the trend : as usual, it needs other confirmations and volumes to more validate the signal. For this purpose, see also the chart with the FIBO levels.

Chart from Investing.com
With a LOG scale, we can appreciate clearly the chart framework (it is substantially the same as the previous chart). Indeed, the LOG scale is reccomended with long-term analysis and with great price excursions (it suits our case). Otherwise, the LINEAR scale is used for indentifying price levels, focusing on the absolute values and not on the relative values of the prices, like the LOG scale.
Chart from Investing.com
In other words, the LOG scale smoothes the market excesses. 
To know more about it, consult the following link : 
The slope and the structure of the EMA bundle certify the uptrend, too.

Chart from Investing.com
Anyway, in my opinion, I would await for the next market movements, in one direction or another : see the following chart. The overcoming of the BB allows only a trading range between area 75 EUR and 85 EUR (in this sense, in the short-term, it lacks a consolidated trend setting, of course). The uptrend is strong and it is almost immaculate, in the long-term.

Chart from Investing.com

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