Immersion Corporation (IMMR), a global haptic technology company yesterday reported their fourth quarter and full year 2016 financial results. Immersion reported fourth quarter adjusted earnings of a loss of $0.27 per share which fell short of analyst expectations of a loss of $0.17 per share. Immersion reported fourth quarter revenues of $9.3 million which fell short of analyst expectations of $10.3 million.

IMMR Technical Analysis

IMMR opened trading yesterday at $10.96 which was down from the previous day’s trading close of $11.15. Shares closed trading yesterday at $10.69 and spiked down after market to $8.92, equivalent to a 17% decrease from the closing price. Taking a look at the daily chart we can see that the last time IMMR traded below these levels we have to go all the way back to November 8th 2016, when it traded at $8.86.

Taking a closer look at the daily chart we can see that before the spike down IMMR had already been in an overall downward trend dating back to February 21st, 2016 when it traded at $11.67. IMMR has a float of 18.45 million shares and traded 1.30 times the normal daily trading volume on Thursday.

For trading purposes, I would like to see IMMR open trading on Friday below $9.50 and if it does I would be looking to take a short position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap down.

Immersion Corporation CEO’s Comments