$IMCR – BUY: @ $65.00, An Impulsive Reaction to the Setup


I had this on a secondary watchlist. I hadn’t been watching much the past few days and took a look this morning. I made an impulsive intraday move to place an order after liking what I saw. If I had been watching, I probably would have taken this trade two days ago at a low volume pivot. Nevertheless, today I placed an order at the point of least resistance, and that order filled. It ended up closing over that point on big volume, so it’s off to a good start.

Stage Analysis

This is showing all the characteristics of stage maturation. After IPO it went straight to Stage 4, where there was good stopping volume at the time to correct the decent. After some time in Stage 1, there was a big volume BO that started the current Stage 2.

Stage 2 Criteria

Bullish market trendYES
Sector RS outperforming marketYES, by 9.74%
2x average volume on BO from Stage 1 or leading up to itYES
30-week MA risingYES
Price above 30-week MAYES
Overhead supply over past 2 yearsYES. IPO was about 2 years ago and above its IPO price
Outperforming SPXYES. by 96.67%
Length of previous Stage 1About 3 months

Base Count

I wasn’t sure if this was 2 bases or a base on top of base. The first was a C&H, but it only broke out 20%, which is less than the typical 30%. It then proceeded to fall back to the middle of the cup. Also, note that it failed right at the Stage 2 channel resistance. It eventually recovered back into a VCP after that shakeout at the low point. Therefore, I think that the C&H failed, but then there was a base reset into the VCP, which formed a base on top of base structure.

Base Structure

Identifiable base on weekly and dailyYES
Prior up-trend of at least 30%YES, prior uptrend before the C&H was over 50%, the BO from the C&H was only 20%
Length of base
    At least 5 weeks flat base
    At least 9 weeks ascending base
    At least 7 weeks for all other bases
130 trading days
Contain elements of strength:
    Daily gap ups on volume
    RS at new high
    Tight price ranges
    KO Recoveries
YES, RS at new high, tight price ranges heading into BO, KO recoveries
Contain elements of support:
    Support weeks
    Base on top of base
    Price above 40-week MA
YES, big volume on up weeks, base on top of base, price above 40-week
Shakeout near low of baseYES, at low of VCP


I bought today at the PoLR, which it closed above on big volume. Now we wait for follow-through.

VCP Criteria

Decreasing volatility from left to rightYES, from 25.59% to 6.93%
2 – 6 contractions (typically 2 – 4)YES, 3
Each contraction is roughly 1/2 the previousYES, 25.59%, 13.51%, 6.93%
Deepest contraction < 50%YES, 25.59%
Deepest contraction < 2.5X the market declineYES
On right side tight price ranges from high to low of rangeYES, leading up to today’s BO
On right side lowest volume in baseYES
Rising RS as emerging from baseYES


Fundamentals are limited. This is a commercial stage biotech that seems to have just turned profitable after last Q. However, there has been no ED since that report, which is a concern. Their fundamentals could be better, but it is also a new company.


Past 2 quarters EPS growth >= 25%NO, only latest Q 85.95%
Past 2 quarters margin growth >=25%YES, 73.34%, 179.04%
EPS growth >= 25% in past 3 – 5 yearsN/A
EPS surprisesYES, latest Q
EPS break outYES, latest Q
Annual ROE >= 17%NO, -117.43%
Earnings driftNO

Buy Details

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