Trading the stock market has certainly 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?

As of late, 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. Some do their own thing, for their own reasons. MannKind has been one of those stocks over the last year.

MannKind focuses on the discovery, development, and commercialization of therapeutic products for diabetes in the United States.

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 1-year chart of MannKind with the added notations:

For the most part, the stock market has rallied overall 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/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 though the stock market has went on to hit new highs.

The key level for MannKind is $5. That mark has been a repeated support for the stock and should do so again if approached.

However, a break of $5 should lead to a test of the stock’s 52-week low.

The stock closed yesterday at $5.24/share. 

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.