Alkermes Plc (NASDAQ: ALKS)

Alkermes Public Limited Company, an integrated biopharmaceutical company, develops medicines that enhance patient outcomes. The company offers RISPERDAL CONSTA for schizophrenia and bipolar I disorder; INVEGA SUSTENNA to treat schizophrenia; AMPYRA/FAMPYRA to treat multiple sclerosis; BYDUREON to treat type II diabetes; VIVITROL for alcohol and opioid dependence; TRICOR, LIPANTHYL, LIPIDIL, and SUPRALIP to lower cholesterol; ZANAFLEX for muscle spasticity; AVINZA for moderate to severe pain; EMEND to treat nausea associated with chemotherapy and surgery; and FOCALIN XR and RITALIN LA for attention deficit and hyperactivity disorder.

Please take a look at the 1-year chart of ALKS (Alkermes Public Limited Company) below with my added notations:

1-year chart of ALKS (Alkermes Public Limited Company)

After rallying all the way into February, ALKS cooled off a bit in March. During the last 3 months the stock has created a clear resistance level at $48, while also forming an up-trending level of support as well. At some point the stock has to break one of those levels.

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The Tale of the Tape: ALKS is wedged between two levels. A short trade could be made on a break of the trendline with a stop placed above the entry. However, if the stock were to break above the $48 resistance traders might want to look to get long on the stock 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