Endo International plc develops, manufactures, and distributes pharmaceutical products and devices worldwide. Its U.S. Generic Pharmaceuticals segment provides tablets, capsules, powders, injectables, liquids, nasal sprays, ophthalmics, and transdermal patches for pain management, urology, central nervous system disorders, immunosuppression, oncology, women’s health, and cardiovascular disease markets. The company’s U.S. Branded Pharmaceuticals segment offers pain management products, such as Lidoderm, OPAN ER, Percocet, and Voltare Gel. Its International Pharmaceuticals segment offers specialty pharmaceutical products in various therapeutic areas.
Take a look at the 1-year chart of Endo (NASDAQ: ENDP) below with the added notations:
ENDP just approached the same price it had hit at then end of June, and since that time, the stock has created a key price level at $14 (blue) that has provided both support and resistance for ENDP. Now that the stock is hitting that level again, traders could expect a pullback.
Join our new Linkedin Group by clicking the link below:
The Tale of the Tape: ENDP has a key level at $14. Traders could enter a short position on a test of $14, with a stop placed above that level. Traders that are bullish on the stock could enter a long position on a break above that level 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!
Christian Tharp, CMT
Follow me on Twitter: @cmtstockcoach