Pacira Biosciences (PCRX) rallies back to $60

Pacira Biosciences, Inc. is a holding company, which provides non-opioid pain management and regenerative health solutions to improve patients’ journeys along the neural pain pathway. Its products include EXPAREL, iovera, and DepoFoam.

Take a look at the 1-year chart of Pacira (NASDAQ: PCRX) below with the added notations…

Chart of PCRX provided by TradingView

PCRX has had a rough go since hitting its peak back in February, but the stock may have recently found a bottom. The possible confirmation of that bottom might be on a break of the important level of resistance at $60 (red) which has formed over the past few months.

The Tale of the Tape: PCRX has a key area of resistance at $60. A long trade could be entered on a breakthrough of that level. However, if you are bearish on the stock, a short trade could be made on any rallies up to $60.

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!

Good luck!

Christian Tharp, CMT 

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