We sold ACAD yesterday in the $14.20 range after the stock has doubled within the last few months. We used the strength of the stock from being inducted into the Nasdaq Biotech Index as of Monday the 20th. The nearest catalyst looks to be the starting of the Alzheimer's (ADP) phase II trial which the company guided for the second half of 2013. Since we are still bullish on the long term prospects of ACAD we will look to re-enter the stock at lower prices after working off severely over bought technical readings, not only on the stock itself, but on the overall market in general is also overbought.
Bottom Line: Although we like the long term prospects of ACAD, we think the stock will retrace some of the move higher it has achieved over the last two months. The retrace will be healthy and set the stage for new highs in the coming months ahead. Thank you for reading.
Above is a daily chart of ACAD. We may be interested in owning the stock again if it drops to around the $13.00 level or lower, approximately -10% lower than our sell price on Tuesday.
Bottom Line: Although we like the long term prospects of ACAD, we think the stock will retrace some of the move higher it has achieved over the last two months. The retrace will be healthy and set the stage for new highs in the coming months ahead. Thank you for reading.
No comments:
Post a Comment