Acorda Therapeutics, Inc., a commercial-stage biopharmaceutical company, engages in the identification, development, and commercialization of therapies for multiple sclerosis (MS), spinal cord injury (SCI), and other central nervous system disorders primarily in the United States. Its products include Ampyra (dalfampridine), a potassium channel blocker to improve walking in patients with MS; and Zanaflex Capsules and Zanaflex tablets (tizanidine hydrochloride), a short-acting drug for the management of spasticity. The company also markets products for the improvement of walking in adult patients with MS under the Fampyra name internationally.
To review Acorda’s stock, please take a look at the 1-year chart of ACOR (Acorda Therapeutics, Inc.) below with my added notations:
Over the last year ACOR has consistently moved lower. During that time the stock had also formed a nice trend line of resistance (blue). Always remember that any (2) points can start a trend line, but it’s the 3rd test and beyond that confirm its importance. As you can see, ACOR’s trend line had been tested multiple times. On Monday the stock finally broke through that trend line.
Join our new Linkedin Group by clicking the link below:
The Tale of the Tape: ACOR has broken above its trend line resistance. A long position could be entered on a pullback to the trend line, with a stop placed below that level. A short position could be entered if ACOR were to break back below the trendline.
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