Innovation Pharmaceuticals Inc (IPIX)

[TOB]

CTIX Daily Chart

The Pause That Refreshes?

A quick second look at today's CTIX Daily chart after the close with a few additional points.

First, after three days closing above resistance at 1.96, I change the color to green signifying this is now proximal support. The open and close being above the line gives this strength. However, the closeness of proximal resistance at 1.99 makes it more than a bit shaky. Really, CTIX needs to close above 1.99, and probably 2.05 to firm up this support.

Interestingly, we also see the open and close, and most of the trading action, between support at 1.96 and resistance at 1.99. A very tight range.

Volume. I drew a green line at today's volume peak to show that while it is a decline off of the rally high two days ago, it is still above average for most of 2014, and more importantly for the flat, tight range the CTIX share price was in since 5/19/14 preceding the Dr. Rally Monkey Rally.

RSI remains a bit hot at 75.57 from the recent high of ~79.4, but note it went as high as 91.7 during the Christmas rally of 2012. Bollinger Band midline is at 1.80. The two day rally pause has got today's bar inside the upper band. Lower band is 1.56, but barring bad news, I just don't see that price low level in play.

The 50MA is at 1.72 and the 200MA at 1.76, a tight range looking for a bullish upside cross around key support at 1.75, with these both already adding considerable strength to that support line.

In the absence of rumour, leaks and news, volume will decide the resolution of this rally pause. Simply stated: How many shares are bought against how many are for sale at this level. Not knowable in advance.

The chart remains in rally mode, including should key support at 1.75 be tested. That is to say, once a higher high has printed passing through a couple of resistance lines, CTIX remains in rally mode as long as it remains above the recent low, in this case 1.60

With that said, I'm not predicting a test of 1.60, the chart is too strong, and catalysts are getting closer by the week. The last update was Brilacidin trial results in the 4th quarter of 2014, which starts October 1st. Other updates and rumours could precede that, and as I've said before, I expect more legs of this pre-catalyst run up. But only time will tell...

CTIX Daily Chart (Click to enlarge)