Acadia Pharmaceuticals Inc. (NASDAQ: ACAD)

Posted On July 24, 2017 10:10 am

Acadia Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and commercialization of small molecule drugs that address unmet medical needs in central nervous system disorders.

Take a look at the 1-year chart of Acadia (NASDAQ: ACAD) below with my added notations:

Over the past couple of months, ACAD had hit the $30 resistance (red) on multiple occasions. In addition, the stock was climbing a trend line of support (green). Together, these two lines formed an ascending triangle on ACAD. Eventually the stock would either have to break the $30 resistance or the trendline, and on Friday ACAD broke resistance.


Join our Linkedin group by clicking the link below to receive free updates, trade ideas, and commentary:

Stock Trading & Investing for Everyone

The Tale of the Tape: ACAD broke its triangle resistance. A long trade could be made on a pullback to the $30. A break back below that mark could be an opportunity to get short instead.

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!

Good luck!

Christian Tharp, CMT


Tagged with:

About author