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TICKERS: IME; IMEXF

Technical Analyst: Medical Device Stock Looking Set to Reverse
Contributed Opinion

Source:

Technical analyst Clive Maund charts the stock of this company that has developed a device that uses a special light that visualizes cancer during minimally invasive surgery.

This is an interesting story. Without going into more detail than is necessary, Imagin Medical Inc. (IME:CSE; IMEXF:OTCQB) has developed a rectal (and bladder) endoscopy device that utilizes a stereoscopic blue light which immediately detects cancerous tissue. It is believed to be something of a breakthrough that has generated a lot of interest amongst doctors and the medical profession and is looking set to become widely used.

The reasons for the stock plunging back to low levels again over the past 18 months, as we can see on its latest 4-year chart, are believed to be a lethal combination of capital markets chicanery and investor impatience, but from the way the charts look now, this prolonged selloff looks to have run its course, which is why the stock is now viewed as increasingly attractive—this and the fact that the company's products are looking set to do well.


The severe downtrend since January last year has brought the stock price down from a peak at over 42 cents to just 7 cents at last night’s close—so it was 7 times more expensive at the start of last year than it is now. Factors that are pointing to a reversal to the upside soon include an easing of downside momentum, made clear by the MACD indicator at the bottom of the chart trending back to the zero line, volume dying back to a relatively very low level as the downtrend has progressed, the relative buoyancy of the Accumulation line, which is a sign that stock has been transferring from weak to stronger hands, and the arrival of the price at a zone of strong support near to the 2017 lows so that it looks like it is at a cyclical low. The convergence of the downtrend is a positive factor too, and the fact that the price is easing out of this downtrend by virtue of moving sideways puts it in position to break higher at any time soon.

We can see all of these factors at work in much more detail in the recent past on the 6-month chart, where positive points to observe are the slowing of the decline as the price arrives at the important long-term support and the strong accumulation line in recent months and the 200-day moving average dropping down closer to the price with passing time, although as there is still a significant gap with it, the price might need to base here for a little longer before an upside breakout can occur, but the picture is now sufficiently positive for a reversal and upside breakout to occur at any time from now on.


The conclusion is that Imagin Medical is an attractive medical device stock here, although at this low price it must of course be classed as a speculative investment. The placing of stops is difficult with such a low priced issue and is a matter of personal preference.

Imagin Medical website.

Imagin Medical Inc, IME.CSX, IMEXF on OTC, closed at C$0.07, $0.05 on 1oth July 19.

Originally posted on CliveMaund.com at 9.00 am EDT on 11th July 2019.

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Disclosure:
1) Clive Maund: I, or members of my immediate household or family, own securities of the following companies mentioned in this article: None. I personally am, or members of my immediate household or family are, paid by the following companies mentioned in this article: None. My company has a financial relationship with the following companies mentioned in this article: None. CliveMaund.com disclosures below. I determined which companies would be included in this article based on my research and understanding of the sector.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: Imagin Medical. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with Imagin Medical. Please click here for more information.
3) Statements and opinions expressed are the opinions of the author and not of Streetwise Reports or its officers. The author is wholly responsible for the validity of the statements. The author was not paid by Streetwise Reports for this article. Streetwise Reports was not paid by the author to publish or syndicate this article. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security. Streetwise Reports requires contributing authors to disclose any shareholdings in, or economic relationships with, companies that they write about. Streetwise Reports relies upon the authors to accurately provide this information and Streetwise Reports has no means of verifying its accuracy.
4) This article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own shares of Imagin Medical, a company mentioned in this article.

Charts provided by the author.

CliveMaund.com Disclosure:
The above represents the opinion and analysis of Mr Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. Mr. Maund is an independent analyst who receives no compensation of any kind from any groups, individuals or corporations mentioned in his reports. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks can only be construed as a solicitation to buy and sell securities when they are subject to the prior approval and endorsement of a Registered Securities Advisor operating in accordance with the appropriate regulations in your area of jurisdiction.




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