On Wednesday, InMode, Ltd (NASDAQ:INMD) broke up into blue skies on big volume to a new all-time high of $96.21. The stock had been struggling to break up over the $90 level since Sept. 24.
- InMode has been holding above the eight-day exponential moving average on the 15-minute chart since Thursday at 9:30 a.m. ET. Traders already in a position can use the level as a guide.
- If InMode loses support of the eight-day EMA, short term scalpers may decide to exit their positions, while longer-term swing traders and those in common shares can zoom out to the hourly-chart.
- After breaking to the new all-time high, InMode began to consolidate on lower timeframes. The only resistance above, in the form of price history, is at the $96.21 mark and there is no oversupply above the level.
- After the short-term consolidation traders will want to watch for a second break to another all-time high on high volume to indicate bullish momentum.
- At about 1:40 a.m. the stock was in the process of printing a bull flag on the 15-minute chart. If the pattern is recognized the measured move is about 6%, which could indicate the stock will rise toward the $100 level.
- There is also psychological resistance at the $100 level and InMode has support below at $90 and $82.17.
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