Pacira Pharmaceuticals, Inc., a specialty pharmaceutical company, develops, commercializes, and manufactures pharmaceutical products for use in hospitals and ambulatory surgery centers worldwide. It develops pharmaceutical products based on its proprietary DepoFoam drug delivery technology. The company markets EXPAREL, a liposome injection of bupivacaine, an amide-type local anesthetic, indicated for administration into the surgical site to produce postsurgical analgesia; and DepoCyt(e), a liposomal formulation of the chemotherapeutic agent cytarabine indicated for the intrathecal treatment of lymphomatous meningitis, a cancer of the immune system.
Please take a look at the 1-year chart of PCRX (Pacira Pharmaceuticals, Inc.) below with my added notations:
PCRX has reached a very important price of $70 based on two different levels of potential support. First, the $70 level itself (purple) has simply been key to the stock on multiple occasions already. In addition, PCRX is approaching a potential up-trending level of support (blue) and that trendline is also getting close to the $70 level.
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The Tale of the Tape: PCRX has a key area of support at $70. A long trade could be made at $70 with a stop placed below that level of entry. However, if the stock were to break below $70 traders might want to look to get short on the stock.
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!
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