What are the potential short‑term price movements if Nasdaq proceeds with a delisting or further sanctions?

Short‑term outlook

The non‑compliance notice from Nasdaq (sentiment –70) signals that the market is now pricing in the risk of a possible delisting or additional sanctions on CIMG (IMG). In a risk‑on environment, any sanction‑or‑delisting scenario typically triggers a sharp, negative price reaction as the “delist risk premium” is stripped away. Expect the stock to sell off 12‑18 % in the next 1‑3 sessions, especially if the exchange‑filing deadline approaches. Liquidity is likely to thin on the Nasdaq book, leading to volatile intraday moves and larger bid‑ask spreads.

Technical clues

• The daily chart shows IMG hovering just below the 50‑day EMA and already testing the lower trend‑channel boundary that has acted as resistance for the past two weeks. A break below the $0.90‑$1.00 support zone could open the “delisting‐danger” down‑trend, inviting momentum sellers.
• On the 4‑hour frame, the Relative Strength Index (RSI) has fallen to ~28, confirming oversold momentum and leaving little room for a bounce unless a surprise compliance filing occurs.
• The short‑term ATR has spiked to a 4‑week high, indicating that any move will be swift and sizeable; stop‑losses should therefore be widened to 4‑5 % to avoid premature exits.

Fundamental & actionable take‑aways

• The core issue is regulatory—there is no change in fundamentals (revenue, digital‑health pipeline) that could offset the sanction risk. As long as the compliance deadline remains unmet, the delisting narrative dominates price action.
• Trading plan: For risk‑averse traders, consider a short‑position or a put‑option spread (e.g., buy one‑month puts, sell OTM calls to capture volatility) with a target of 12‑15 % downside in the next 5‑10 days. If you already hold the stock, trimming exposure or tightening stop‑losses around the $0.95 level is prudent. Conversely, a contrarian can look for a short‑cover rally if the company unexpectedly resolves the compliance issue; a tight, intraday bounce above the $1.00 resistance could offer a quick scalping opportunity, but the odds are low until the notice is lifted.