Pharmaceutical Stock Makes Strong Push To 52-Week High

As we always say, trading is mostly about keeping it simple. Not confusing yourself with a multitude of different indicators or a complex strategy that’s difficult to replicate day in and day out. That’t exactly why my students and I stick to the basics when it comes to finding trades and executing on them.

Today’s trade idea is a great example of that simple strategy, the one I have used for a number of years to find success in the market, not just for me, but thousands of my students as well. Looking at the chart of ACADIA Pharmaceuticals (ACAD), you can see there is a very clear level of resistance and with that level mapped out, we now know where the price has a higher probability to react in a slightly more predictable way than if we were to just trade at some random price.

Resistance for this stock has formed at the $22 level, as you can see in the video below. This level also corresponds with the 52-week high, meaning, if the stock can break through this level with higher volume, higher prices should follow. If there is a failure to make a meaningful push and hold above this level, a reject of this resistance level, at least in the short term, could also be likely.

Again, for trades like these, it is important to gauge price action, not just blindly take a trade because you are trying to predict which of the two scenarios would take place. We are not weathermen, we are not in the prediction business. Patience is the top priority and if you miss a trade on this stock, fear not, we will be back here on Monday with another trade idea.

Learn to find these levels for yourself when you join The Profit Machine. There, you’ll learn all about my favorite stocks, setups, strategies, and plenty more. You’ll also be invited to weekly webinars where I answer questions and go over important trading lessons, like the one in today’s article. The best part, you’ll also receive live trade alerts. Not only will you get a world-class education, but you’ll earn while you learn.