Both Innovaderma and Versarien are (or were) popular retail stocks in the past. Both of them have similarities in the fact that both share prices have been much, much higher, and both of them have had marmite directors at the helm. The similarities stop there. One produces graphene, and one does not. One makes a profit, and the other does not.
Innovaderma
Innovaderma is a business that does a bit of everything, with its popular brand Skinny Tan (which my wife tells me is a terrible product) and a device called Prolong that claims to be “the world’s only FDA-cleared medical device for premature ejaculation” (a product I have not tried).
In recent months, it has seen the decks cleared with unpopular Executive Chairman Haris Chaudry leaving and selling his entire shareholding, and a positive trading statement. I already hold a long position in this stock, and the price action could now be looking a lot more bullish if it makes a move above the 200 MA.
We can see that the price has been steadily in a downtrend from at least September 2018, and the price has now managed to break that trendline.
Looking closer, average volumes have also been up since the low – when Chaudry’s stock was placed in November.
The stock is now reaching a critical level. Historically, it’s struggled to break the 200 MA, and we’re currently looking at a fifth test of the MA. The price has confirmed this level as significant, and so the price moving through this level (especially on larger than average volume) would tell me that the price is ready to move higher.
Future levels of resistance will be found at 100p, as this is a round number. Round numbers are psychological support and resistance for many private investors, which, with this stock being SETSqx and a very small market cap, is mostly traded by private investors.
After that, 115p will likely provide further supply into the market, as we can see the price has traded at 115p several times on large volume days. The larger the volume, the more significant these levels become as volume shows interest.
Innovaderma will reveal its results to the market on February 25th. Those…
