I have not reviewed the charts of InMode (INMD) since March 20 of 2020 here, where I wrote that, "There is a saying that if you don't attack you will never earn a Navy Cross, but if you don't see a base pattern you probably won't buy a stock too soon. I would wait before buying INMD."
We have waited long enough so let's check out the charts again of this maker of a skin rejuvenation device.
In the daily bar chart of INMD, below, we can see that the shares have been in a strong uptrend the past 12 months. INMD has soared four-fold in 12 months -- impressive. Prices are in a parabolic-like rise above the positive sloped 50-day moving average line and the rising 200-day line.
The On-Balance-Volume (OBV) line has risen steadily the past year and the Moving Average Convergence Divergence (MACD) oscillator has been above the zero line for nearly the entire past year.
In the weekly Japanese candlestick chart of INMD, below, we can see a bullish picture. Prices are in an uptrend with many white real bodies or bullish candles. The red real bodies or bearish candles are short-term corrections. The slope of the 40-week moving average line is positive but prices are trading at twice the level of the average line and there are some quarters where that is considered overbought or extended.
The Moving Average Convergence Divergence (MACD) oscillator is bullish.
This daily Point and Figure chart of INMD, below, is projecting a possible upside price target in the $207 area.
In this weekly close only Point and Figure chart of INMD, below, we used a five-box reversal filter. Here it projects a tentative price target in the $261 area.
Bottom -ine strategy: Traders looking to go long INMD should wait for a dip under $150 to probe the long side. Risk a close below $130 for now. $207 is our price target for now.
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