ACADIA Pharmaceuticals Inc. (NASDAQ: ACAD)

ACADIA Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and commercialization of small molecule drugs that address unmet medical needs in neurological and related central nervous system disorders. Its lead product candidate is NUPLAZID, which completed the Phase III pivotal trials for the treatment of Parkinson’s disease psychosis; is in Phase II study for Alzheimer’s disease psychosis; and has completed Phase II trial for the treatment of schizophrenia. It also has clinical-stage programs for chronic pain and glaucoma in collaboration with Allergan, Inc.
Take a look at the 1-year chart of Acadia (NASDAQ: ACAD) with the added notations:

ACAD trended higher and higher up to its $52 peak in July. However, since that time the stock has fallen all the way back down to its $30 level. Over the past year, ACAD has found support at that same $30 support (green) on multiple occasions. Traders could expect some sort of bounce if the stock reaches that support again. However, if the $30 support were to break, lower prices should follow.

The Tale of the Tape: ACAD has an important level of support at $30. A trader could enter a long position at $30 with a stop placed under the level. If the stock were to break below the support a short position could be entered instead.