Innovation Pharmaceuticals Inc (IPIX)

[TOB]

Why CTIX should break-above $2.47 to Blue Sky

Let’s look at today’s test of the December 2012 all-time high and consider why things are very different now.

Today 9/17/14 CTIX had a green bar close at 2.42 with 1,055,929 shares traded.

The day closed exactly at resistance of 2.42 printed 5/10/13 with volume of 1,505,212 , with the big difference being the close that day was 2.10, leaving a large upper wick.

Today's close 32 cents higher is obviously stronger.

While the CTIX all-time high is 2.47 was also touched today, the all-time high day close is 2.42, same as today.

What has changed for CTIX? A partial summary below:

Some resistance at this level is to be expected, however, resistance is weakened by several factors.

1. The resistance printed almost 2 years ago.

2. At the time of the prior high, CTIX had just one drug beginning a trial and no near-term catalysts.

3. CTIX had already made a huge rally that year, from a low of .36 to 2.47, almost a 700% gain.

Now the rally is strengthened by numerous factors.

1. A key near-term catalyst is fast approaching with Brilacidin PIIb results. A new drug for CTIX since the 2012 high. Read about this here: Update: Cellceutix's Antibiotic Brilacidin Should Move Share Price Before Kevetrin Or Prurisol

2. This pre-catalyst buying volume and rally, suggests to seasoned investors that news is out that the Brilacidin 2b trial was successful.

3. We have word that there are many in the medical and scientific community very excited about Brilacidin-OM Phase 2B trial expected to start in 1 or 2 months

4. New Clinical Trial start catalysts are approaching for three drugs, Prurisol Phase 2/3 for Psoriasis, Kevetrin 1b for Leukemia(AML), Brilacidin OM phase 2B.

5. The percentage rise of ~60% is much smaller this year so far, from a low of 1.49, and a consolidation period low of 1.60

6. Up-listing plans, financing already in place for up-coming trials, and strong possibility of a partnership on positive Brilacidin PIIb results. Link to CTIX 10-K

6. Flagship cancer drug Kevetrin is at a high dose, well past the dosing level range believed therapeutic, and an almost certain successful clinical trial primary outcome of safety.

Chart challenge.

1. Double-top at the all-time high.

2. Psychological resistance at 2.50

3. Unknown number of sellers here.

My view on balance:

Either we are seeing the second rally wave end here, or we will see it break higher. Unknowable as it depends on the balance between the buyers and the sellers.

A rally wave continuation, or a third rally wave up to blue-sky territory is likely, as part of the previously mentioned pre-catalyst rally.

On positive Brilacidin PIIb trial results, all technical chart bets are off. News trumps charts.