Deciphera Pharmaceuticals, Inc. operates as a biotechnology company which develops and manufactures kinase inhibitor treatments for cancer by cutting off the ability of tumor cells to thrive and spread.
Take a look at the 1-year chart of Deciphera (NASDAQ: DCPH) below with the added notations:
Over the course of the past 6 months, DCPH has formed an important level to watch at the $50 (blue) mark. That level was resistance last November, then it was support back in February, and then back to resistance in April. DCPH is currently above $50, which could mean a support bounce is coming.
The Tale of the Tape: DCPH has a key level at $50. A trader could enter a long position on a pull back down to that level with a stop placed under it. However, if traders are bearish on the stock, a short trade could be made instead on a break of the $50 mark.
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