Trading the stock market has been somewhat of a challenge over the last month or so.
Is it going back up? Has it finally started the long awaited correction? Should traders be on the long side or the short side?
Trying to get on the right side of those questions has been tough to do. And of course, traders want to gauge the market in order to make their bets.
To make things trickier, not all stocks follow the market. MannKind has been one of those stocks over the last year.
The company: MannKind Corporation
Ticker Symbol: (NASDAQ: MNKD)
Sector: Healthcare
Industry: Biotechnology
MannKind focuses on the discovery, development, and commercialization of therapeutic products for diabetes in the United States.
Related Link: Agios Pharmaceuticals Has Been Plummeting
Its lead product is AFREZZA inhalation powder, which is an insulin to control high blood sugar in adult patients with type 1 and type 2 diabetes.
Review the one-year chart of MannKind with the added notations:
For the most part, the market has rallied higher during the last 12 months. MannKind obviously has not.
After peaking at the end of June, MannKind lost over half of its value before finally bottoming at $4.50 per share. Since that bottom, the stock has had its share of ups and downs.
MannKind made it as high as $8 before declining yet again, even as the market was hitting new highs.
The key level for MannKind is $5. That mark has been a repeated support for the stock and should be again if approached.
However, a break of $5 may lead to a test of the stock's 52-week low.
The stock closed Tuesday at $5.20, down more than 2 percent.
No matter what your strategy, or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key.
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