Take a look at the 1-year chart of NewLink (Nasdaq: NLNK) below with added notations:
NLNK has formed a clear resistance at $42 (red), which would also be a 10-month high breakout if the stock could manage to break above it. In addition, the stock is climbing a short term, up-trending support level (green) over the last 2 months. These two levels combined have NLNK stuck within a common chart pattern known as an ascending triangle. Eventually, the stock will have to break one of those levels.
The Tale of the Tape: NLNK has an uptrending support and a clear $42 resistance level to watch. A long trade could be made on a pullback to the support, or on a breakout above $42. A break below the uptrending support would be an opportunity to enter a short trade.
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