IG sits under resistance

IGI Laboratories, Inc. develops, manufactures, and markets topical formulations in the United States. The company sells its generic topical pharmaceutical products under the IGI label. It also develops, manufactures, fills, and packages topical semi-solid and liquid products for branded and generic pharmaceutical customers, as well as for over-the-counter (OTC) and cosmetic markets. The company’s products are used in various applications from cosmetics and cosmeceuticals to the prescription treatment of conditions, such as dermatitis, psoriasis, and eczema.

Take a look at the 1-year chart of IGI (AMEX: IG) below with added notations:

IG rallied from February into December before finally stalling at around $11. The stock has hit that $11 mark again several times this month. If IG can retest the $11 level once more (red) the stock may finally look to break through. A close above that resistance would also constitute a new 52-week high.

The Tale of the Tape: IG has a 52-week resistance at $11. The possible long position on the stock would be on a breakout above that level with a stop placed under it.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

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!

Good luck!

Christian Tharp, CMT

@cmtstockcoach