Imagination TV Inc. (IMTV)

[ctbone72]

A huge sign of strength in a stock can be found in the pullbacks after a run. If the price plummets after a spike up, the rise was likely due to hype.

Here we see the price spike and has now pulled back slightly from the highs. The key to seeing the potential is that the price has now fallen into a narrow channel. Profit takers are getting out and their shares are being soaked up quickly. Their is not enough selling to push the price down, so once the profit taking is done, this will likely head north again quickly.

I buy these setups every time I see them and it almost always turns out profitable!

Good luck to all!