Don't Ignore This Chart!

Ligand's Bullish Wedge Touches Price Support

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Ligand Pharmaceutical (LGND) broke out above price resistance in April with solid volume confirmation.  But the stock was extremely overbought and in need of a pullback to unwind its momentum oscillators.  RSI had touched the 80s with stochastic elevated in the 90s.  LGND has lost approximately 12%-13% over the past six weeks as a bullish wedge has formed to drop the price back to price support from the April breakout.  Check it out:

The black arrow now shows the RSI near 40 and stochastic at 24, a much better reward to risk entry point.

Happy trading!

Tom

Tom Bowley
About the author: is the Chief Market Strategist at EarningsBeats.com, where he provides stock market education, guidance, and trading strategies using a unique combination of technical, fundamental, and historical analysis. Tom provides EarningsBeats.com members with four portfolios (Model, Aggressive, Income, and Value), all designed to beat the benchmark S&P 500, and a revolving Watch List of hundreds of companies reporting strong quarterly earnings (must beat both revenue and EPS estimates) and exhibiting technical strength as well. These companies comprise EarningsBeats' annotated Strong Earnings ChartList (SECL), from which Tom trades exclusively. Tom writes a Daily Market Report (DMR) for members to include an executive summary, market outlook, sector/industry watch, and trading ideas. Learn More
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