Acorda Therapeutics Inc (NASDAQ: ACOR)

Acorda Therapeutics, Inc., a biopharmaceutical company, identifies, develops, and commercializes novel therapies for neurological disorders in the United States. The company markets Ampyra (dalfampridine), a potassium channel blocker to improve walking in patients with multiple sclerosis (MS); Zanaflex Capsules and Zanaflex tablets for the management of spasticity, a symptom of central nervous system disorders; and Qutenza, a dermal patch for the management of neuropathic pain associated with post-herpetic neuralgia.

Take a look at the 1-year chart of Acorda (NASDAQ: ACOR) below with the added notations:

1-year chart of Acorda (NASDAQ: ACOR)

ACOR had been taking gradual steps lower throughout the past year. Along the way, the $36 price level (blue) has become very important to the stock, specifically over the past 9 months. Not only was $36 a key support back in December and February, but that level had also been hit as resistance several times while the stock was under it. Last week ACOR popped back above that $36 level.


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Stock Trading & Investing for Everyone

The Tale of the Tape: ACOR has a key level at $36. A trader could enter a long position on a pullback down to that $36 with a stop placed under it. However, if traders are bearish on the stock, a short trade could be made instead on a break back below $36.

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

Follow me on Twitter: @cmtstockcoach