Can Anything Stop INNT Stock from Further Gains?
INNT Stock: The Previous All-Time High Is Fast Approaching
I am sure we can agree that the current investment environment is a difficult one to endure. This notion of a difficult market is especially true for those who are inclined to carry only long positions, because a market characterized by high volatility, like the current one, is a market where the path of least resistance is tilted toward lower prices.
I am trying to look past the current volatility because, like every other volatility event that has occurred in the past, it will eventually pass and cooler heads will prevail. Until those cooler heads do prevail, I have decided to wear rose-colored glasses and focus on the positive.
There is always a bull market somewhere, so, as a result, I continue to look for investments that are setting up to make a substantial move toward higher prices.
I have recently stumbled upon Innovate Biopharmaceuticals Inc (NASDAQ:INNT). I am intrigued by Innovate Biopharmaceuticals stock because it is currently approaching its previous all-time high, which in itself is a bullish feat, especially given the current market environment. There is a possibility that INNT stock forges a new all-time high on this attempt.
The following Innovate Biopharmaceuticals stock chart illustrates the route that INNT stock has taken in this attempt at a new all-time high.
Chart courtesy of StockCharts.com
This INNT stock chart illustrates the trading action that has transpired in Innovate Biopharmaceuticals stock since inception.
INNT stock began trading on July 8, 2016, and it forged a high of $41.50 on that day. Innovate Biopharmaceuticals stock has been caught in a bearish trend ever since. This bearish trend has consisted of a sequence containing a series of lower lows and lower highs, which is the quintessential characteristic that defines a bearish trend.
This bearish trend persisted until February 8, 2018, when INNT stock finally put in a bottom at $3.43, after losing 91.73% of its value from its peak. A few short days later, a violent rally toward higher stock prices developed. The catalyst that spawned this rally was positive news surrounding INNT stock’s autoimmune and inflammation drug “larazotide acetate” (INN-202).
Over the course of the next seven weeks, INNT stock appreciated by 847.52%. The previous all-time high, which is highlighted as a significant level of price resistance on the above Innovate Biopharmaceuticals stock chart, is fast approaching, and it is the next logical price objective.
I believe that the likelihood that this stock tests the previous all-time high in the not-too-distant future is high because a number of technical indicators continue to support the notion that the current move toward higher prices is still in development.
These technical developments are highlighted on the following Innovate Biopharmaceuticals stock chart.
Chart courtesy of StockCharts.com
This INNT stock chart focuses on the bullish advance that began in February.
The bullish move toward higher stock prices began after a bullish signal was generated by the moving average convergence/divergence (MACD) indicator in mid-February.
MACD is a momentum indicator that uses the crossing of a signal line to distinguish whether bullish or bearish momentum is influencing the price action in a stock. A bullish MACD signal implies that a stock is geared toward higher prices, while a bearish cross implies that a stock is geared toward lower prices.
This is important information because a stock cannot stage a sustained move in either direction unless the appropriate momentum is supporting it.
In mid-March, a golden cross was generated when the faster 50-day moving average, highlighted in blue, crossed above the slower 200-day moving average, highlighted in red. This suggests that a bull market is in development and, since it was the first time in this stock’s history that such a signal was generated, its implications should not be taken lightly.
At this moment, the MACD signal lines remain in bullish alignment, and the repercussions suggested by the MACD signal were recently reinforced by the golden cross. As long as these indicators remain in bullish alignment, I have reason to assume that higher stock prices are on the horizon.
Resistance at $41.50 is the next logical price objective, and it is the last remaining obstacle that can prevent Innovate Biopharmaceuticals stock from continuing its advance. I believe that this level will be tested in the coming days. Whether resistance will be taken out on its first attempt is something that remains to be seen.
Analyst Take
The epic move toward higher Innovate Biopharmaceuticals stock prices has been supported by a number of technical indicators and, as long as these technical indicators remain in bullish alignment, the development of higher INNT stock prices is expected to continue.
I am currently watching the all-time high, which resides at $41.50, because this is the last level of resistance that can possibly contain this investment from advancing any further.
