Appreciate the thoughtful response.

Here is a chart of ACOR near close today, 11.7.19. Keep in mind, it’s had a big recent move. The RSI indicated overbought conditions. It’s struggling at the 2.60 resistance. However, everything looks good so far. To take out that resistance at 2.60, it makes sense for the stock to first pull back and consolidate for a bit and then attempt another move up thru that level. Also note that it has a near perfect 50% retracement from where it broke out, to where it found resistance, which is a healthy sign for another move up. Also notice how it’s respecting the recent uptrend line. With regards to your question of stay or go, if you see a significant break down below that uptrend line on strong volume, just make sure you have stop in place. Alternately, if it continues to consolidate for a few days at this level, or near that TL, then you have more reasons to consider holding.

@rsotc when reviewing the activity for days like today (11/7), how do you determine if this security is still on plan to hit targets vs jump out? ACOR was up +5%, now down 6% in the same day. I understand biotech can fluctuate greatly due to the nature of these securities. Is there a best practice you go by to determine whether to stick it out or get out?

10/23 candle was a somewhat large green candle but not a breakout candle, according to my chart & much more importantly, volume on 10/23 was only 1.4M shares vs. vol of 6.9M on yesterday’s breakout. That’s the 2nd highest volume on the stock, second only to the big red candle on Aug 2nd. Additionally, the volume had recently been rising along with price in the previous 2 sessions before ACOR reported earnings, indicating that a little birdy has been leaking some positive news (insiders, legal or not, buying the stock) just before the earnings report.

Based on the bullish technical posture of the chart (strong positive divergences) coupled with the high-volume breakout (the high-volume increases the odds the breakout will stick), I’d rather be long the stock on the breakout yesterday as from my experience, low-priced stocks like this often gap up & continue to run the day after a breakout so I’d rather already have at least a starter position coming into today vs. waiting for a follow-up green candle & potential missing an objective entry, should the stock gap quite a bit higher. That doesn’t seem to be the case now (trading at 2.48 in pre-market) & if the stock takes out 2.67 today I will likely add to my position.

Very much so. Log scaling is a must IMO whenever charting a security that has a relatively large differential in prices (between the highs & lows on the chart) as it “adjusts” the candlesticks to reflect equal percent moves regardless of where they appear on the chart vs. linear (aka- arithmetic) scaling, which often paints a distorted picture of the magnitude of the trends (including different trendlines) due to the disproportionate candlesticks.

Aftermarket looks good we shall see tomorrow.