AbCellera Biologics, Inc. engages in the development of therapeutic antibodies. It offers antibody discovery platform that searches, decodes and analyzes natural immune systems to find antibodies that can be developed to prevent and treat disease…
Take a look at the 1-year chart of AbCellera (ABCL) below with added notations:
(Chart of ABCL provided by TradingView)
ABCL had been holding a major level of support at $15 (blue) for the past several months. The stock ended up breaking below that support yesterday, which means lower prices should still be coming, overall. If ABCL were to rally back up to that $15 breakdown level, it may now act as resistance.
ABCL broke a key level of support at $15. A trader could enter a short position on any rallies up to or near $15 with a stop placed above the level. If the stock were to break back above the $15 level, a long position might be entered 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