Trader’s Narrative

Elan is a British biotech stock that has just zoomed out of a flatish, four month long base. As you can see, it is showing remarkable relative strength in the face of the general market action:

But even so, I would only go long ELN within a short time frame (days rather than weeks or months) since it is notoriously volatile. As well, there is a massive amount of overhead resistance if you zoom out to a longer time frame.

It bears watching to see if it continues to show strength, especially this week, as the general indices may reverse to revisit recent lows. In that case, it would be a fantastic candidate for a swing trade long.