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

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Tom Bowley
About the author: co-founded Invested Central in 2004 and served as the site's Chief Market Strategist for more than 10 years. Invested Central provides stock market education and guidance for those interested in making their own financial decisions. During his tenure at Invested Central, Tom co-hosted Market Open LIVE, a national radio broadcast that covered many of the largest markets across the U.S. In addition, he has spoken at various conferences throughout the United States and Canada and has taught thousands of traders across the globe how to trade equities more wisely with an emphasis on managing risk and intermarket relationships. Learn More
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