One of the more tricky aspects of getting a handle on the more bullish of stock situations of which Ilika PLC (LON:IKA) is clearly a good example, is the exact timing of fresh rallies. This is because extended periods can be served up where the shares are simply consolidating previous rebounds, periods which can be uncomfortably long in terms of meaning that traders experience “down time” in terms of the return on their cash. For shares of Ilika this point is underlined by the way that we have been in consolidation mode since the initial October peak and high for 2014 through 2014. What can be seen currently is that the stock is back at the 200 day moving average level at 83p, and that previously in December when the feature was running near 75p there was a significant 30% plus recovery from this feature. Given the way that the 200 day line is still rising it may be worth backing the idea of a similar bounce over the near term, especially while there is no end of day close back below the December low at 74p. Those looking for a momentum buy trigger on Ilika would wait on a break back above the 50 day moving average now at 87p before assuming a best case scenario target of 120p on a 2-3 months timeframe at the top of a July rising trend channel.
