Neurocrine Biosciences, Inc. discovers and develops pharmaceuticals for the treatment of neurological and endocrine-related diseases and disorders in the United States and internationally.
Take a look at the 1-year chart of Neurocrine (NASDAQ: NBIX) below with added notations:
NBIX has been trading in a huge, sideways move during the past year. Over that period of time, the stock has hit the same resistance at $55 (red) several times. Now, the stock is sitting back at that level again. A solid close above the $55 should lead to another leg higher for NBIX.
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The Tale of the Tape: NBIX has a 52-week resistance at $55. The possible long position on the stock would be on a breakout above that level with a stop placed under it.
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