Today's trade idea is a long-term buy on ACADIA Pharma. Starting with a weekly chart on the left, we can count an impulsive move from the 2010 low (starting below $1.00). The extended Wave 3 clearly subdivides into five smaller waves, increasing our conviction in the count. It's also worth highlighting that the prior all-time high around $18 held as support after being broken in 2013.
Looking at the daily chart on the right, we can see what may be a complete Wave 4 above $13. The corrective sequence is neatly contained within a parallel channel and has a clear triangle in Wave B. This count suggests that the bounce from the bottom of the channel is the start of larger-degree Wave 5. Initiating a long position at market with the intention of holding long-term for new all-time highs.
Looking at the daily chart on the right, we can see what may be a complete Wave 4 above $13. The corrective sequence is neatly contained within a parallel channel and has a clear triangle in Wave B. This count suggests that the bounce from the bottom of the channel is the start of larger-degree Wave 5. Initiating a long position at market with the intention of holding long-term for new all-time highs.