Ionis Pharmaceuticals, Inc. engages in discovering and developing RNA-targeted therapeutics. The company markets SPINRAZA, an antisense drug for spinal muscular atrophy in pediatric and adult patients; and Kynamro an oligonucleotide inhibitor for use in patients with homozygous familial hypercholesterolemia to reduce low density lipoprotein-cholesterol, apolipoprotein B, total cholesterol, and non-high density lipoprotein-cholesterol, and as an adjunct to lipid lowering medications and diet.
Take a look at the 1-year chart of Ionis (NASDAQ: IONS) below with added notations:
IONS had been trading primarily sideways for the past year, but during the most recent 3 months the stock created a key resistance level at $60 (green), which was also IONS’ 52-week high resistance barrier. The stock finally broke above that level, and moved higher, as expected. Now that a pullback seems to have started, traders could look to enter a position at a
more desirable price.
The Tale of the Tape: IONS broke its 52-week resistance at $60. The possible long position on the stock would be on a pullback down to that level with a stop placed under it. A break
back below $60 could negate the forecast for a move higher.
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