Acorda Therapeutics, Inc., a biopharmaceutical company, identifies, develops, and commercializes novel therapies for neurological disorders in the United States. The company markets Ampyra (dalfampridine), an oral drug to improve walking in patients with multiple sclerosis (MS); Zanaflex Capsules and tablets for the management of spasticity; and Qutenza, a dermal patch for the management of neuropathic pain associated with post-herpetic neuralgia. It also markets Ampyra as Fampyra in Europe, Asia, and the Americas.
Take a look at the 1-year chart of Acorda (NASDAQ: ACOR) below with my added notations:
Over the past three months, ACOR has been butting up against the $22 resistance (red). In addition, the stock has been climbing a potential trend line of support (green) since the end of December. Together, these two lines have formed an ascending triangle on ACOR. Eventually, the stock will have to break either the $22 resistance or the triangle support.
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The Tale of the Tape: ACOR is winding up between two key levels. A long trade could be made at the triangle support or on a break above $22. A break below the trendline would be an opportunity to enter a short trade.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!
Christian Tharp, CMT
Follow me on Twitter: @cmtstockcoach