Innovaderma: Clearance of 275p opens up 500p technical target

1 mins. to read
Innovaderma: Clearance of 275p opens up 500p technical target

It is not always a good idea to keep hiking price targets on stocks and markets. However, in the case of Innovaderma (LON:IDP) this would appear to be the way to go for now.

It may be said that the only really bad part of the Innovaderma experience in the recent past was the pullback/flushout seen during January. This will have upset a lot of traders/investors, and as we may be aware, when this happens it takes a while to build up confidence again.

Looking at the charting configuration now it can be seen how the stock is trading in the wake of an as yet unfilled gap to the upside, a signal which can be one of the most powerful in the charting canon. Indeed, the break of the former January–May resistance opens up a target here as great as the top of a rising trend channel from as long ago as October. This could lead us to 500p over the next 1-3 months.

As for the fundamentals, the driver earlier this spring was the tie up with ASOS (LON:ASC). But now it would appear we have another big name in the mix in the form of Superdrug. This will be helpful in the run up to Innovaderma’s new haircare product range in August, something which should appeal to a wide market given the focus is on hair loss.

IDP chart

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