Can Liquidia (LQDA) Hold?

Liquidia Corp. operates as a holding company which through its subsidiary engages in developing and commercializing biopharmaceutical products. It engages in novel product development used in PRINT technology to transform the lives of patients. PRINT is a particle engineering platform that enables precise production of uniform drug particles designed to improve the safety, efficacy and performance of a wide range of therapies.

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

Chart of LQDA provided by TradingView

LQDA has formed a major level of support around the $5 level (green) over the past year. The stock has made it back down to that mark and could be set to rally off of it once again. However, if the support were to break, lower prices will likely follow for LQDA.

The Tale of the Tape: LQDA has key support at $5. A trader could enter a long position at or around $5 with a stop placed under the level. If the stock were to break below the support, a short position could 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!

Good luck!

Christian Tharp, CMT 


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