ImmuPharma PLC (LSE:IMM) is a stock which has had a positive profile on a technical basis for some time, although so far we have yet to see what may perhaps be the best of bullishness that is promised here. That said, September last year did deliver quite an impressive run it from above 40p towards 65p plus. Essentially we have seen a consolidation of this move ever since. The key for the Bulls over the next few weeks will be if the stock can hold onto what is the notional rising trend channel from June with its currently running at the 47p level.
So far this floor has been tested once in January, and we may expect another test over the next few sessions. However, barring a weekly close below this charting feature one would expect the current consolidation to be resolved on the upside. This is especially case given the way that with the RSI at 32 out of 100, we have just seen the shares bounce back from an oversold technical position.
They are therefore two ways forward here. The first would be to buy the shares now with a stop loss just below the June floor, and seek out a retest of the autumn 2014 peak above 65p. Alternatively it may be that cautious traders wished to wait on an end of day close above the 200 day moving average at 51p, as a momentum buy trigger, before taking the plunge on the upside.
