Fri 26'th May 2017
Innocoll AG Stock Analysis
Technical stock analysis for Fri 26'th May 2017
Buy candidate since 2017-05-17 Gain 2.36%
Innocoll AG lies in the lower part of a very wide and strong rising trend in the short term, and this will normally pose a very good buying opportunity. A break down the bottom trend line at USD 2.14 will firstly indicate a slower raising rate, but may also be a early warning for a trend shift. Given the current short-term trend, the stock is expected to rise 106.1% during the next 3 months and, with 90% probability hold a price between USD 4.41 and USD 6.56 at the end of this period.
Innocoll AG holds buy signals from both short- and long-term moving averages. In addition, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down there will be some support from the lines at USD 2.16 and USD 2.10. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday April 27, 2017, which indicates further gains until a new top pivot has been found. Some negative signals were issued as well, and these may have some influence on the near short-term development. Volume fell during the last trading day while the price increased. This causes a divergence and may be considered as an early warning, but it may also not.
Relative Strength Index (RSI)
RSI14 is 50 and the stock is currently not being overbought or oversold
Support & Resistance
On the downside, the stock finds support just below today's level from accumulated volume at USD 1.88 and USD 1.82. On the upside the stock meets some resistance just above today's level from accumulated volume at USD 2.19.
There is natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Innocoll AG finds support just below today's level at 1.88. If this is broken, then the next support from accumulated volume will be at 1.82 and 1.66. The stock is about to test the resistance at USD 2.19. If this level is broken the stock may move faster and we often see a peak at the end of such a break, posing a good sales opportunity as in 90% of the cases you will get a reaction back to the level broken before new gains. A break should be followed by increasing volume else the break may be false and despite a break of the actual resistance level the stock falls back fairly soon.
In general the stock tends to have controlled movements, but the low liquidity has increased the risk substantially.
Our recommended stoploss: USD 2.05 (-5.57%) (This stock has low daily movements and this gives low risk. There is a buy signal from pivot bottom found 21 days ago.)
Several short-term signals, along with a general good trend, are positive and we conclude that the current level may hold a buying opportunity as there is a fair chance for this stock to perform well in the short-term. We have upgraded our recommendation for this stock since last evaluation from a Hold/Accumulate to a Buy Candidate.