Alnylam Pharmaceuticals, Inc., a biopharmaceutical company, discovers, develops, and commercializes novel therapeutics based on RNA interference (RNAi). Its pipeline of investigational RNAi therapeutics focuses on genetic medicines, cardio-metabolic diseases, and hepatic infectious diseases.
Take a look at the 1-year chart of Alnylam (NASDAQ: ALNY) below with my added notations:
During the past three months, ALNY has formed a clear level of resistance to watch at the $90 (red) mark. That level was also an important area of support when the stock was above it. A close above that $90 level should lead to higher prices.
The Tale of the Tape: ALNY has a key level of resistance at $90. A long trade could be entered on a break through that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $90.
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