| There’s a big difference between a stock that’s extended… and a stock that’s expanding. Most traders confuse the two. LGND just made a powerful move — the kind that attracts attention fast. But what’s happening right now is even more important than the run itself. It’s not collapsing.
It’s not breaking down.
It’s resetting. And when strong stocks reset without losing structural integrity, that’s where high-probability opportunity begins to form. In today’s deep dive, I’m walking you through exactly what I see on the weekly chart — the trend structure, momentum regime, support zones, and what would confirm continuation versus failure. This isn’t surface commentary. This is structure analysis. Let’s break it down. 📊 LGND: Ligand Pharmaceuticals Inc. (Weekly Chart) ✅ Trend Overview LGND is trading around $185.96 and remains in a dominant long-term uptrend following its multi-year accumulation base from 2022–2023. The weekly structure is clean and intact: - 200-week SMA is flattening and beginning to turn higher
- Price remains well above the 200-week SMA
- Higher highs and higher lows firmly intact
- Breakout above $120–$130 confirmed structural shift
- Recent pullback from $205 is corrective, not impulsive
There is no breakdown of trend integrity here. This is momentum digestion inside strength. 🔍 Volume & RSI RSI (14): ~53 - RSI cooled from overbought conditions
- Holding above 50 keeps bullish regime intact
- No bearish divergence visible
- Selling pressure appears controlled
Momentum reset — not momentum failure. 📃 Original Setup Bullish continuation following confirmed multi-year base breakout and sustained weekly expansion phase. 💡 Trade Idea Primary Entry Zone: $170–$178
→ Prior breakout shelf
→ Recent higher-low zone
→ Weekly consolidation support Aggressive Entry: Weekly close above $195
→ Confirms expansion resumption
→ Signals buyers defending structure Target Zone: $215–$230
→ Measured move extension
→ Psychological magnet above $200 Stop-Loss: Below $158
→ Violates weekly higher-low structure
→ Breaks trend integrity If your goal is to replace your paycheck, this is the kind of structure you need to understand. Tomorrow, I’m hosting a free live training where I’ll break down exactly how these setups fit into a repeatable income framework designed to generate consistent weekly cash flow. Not hype.
Not chaos.
A real system. If income replacement is your goal, this session is for you. And it’s completely free. Save your seat for tomorrow. 📃 Why This Setup Works ✅ Multi-year base breakout already confirmed
✅ Weekly higher-high / higher-low structure intact
✅ RSI reset while price remains elevated
✅ 200-week SMA turning up — institutional confirmation
✅ Pullback is orderly and controlled Strong stocks don’t collapse after breakouts. They consolidate and reload. ✅ Summary LGND is behaving exactly how powerful expansion-phase stocks behave. This is not distribution.
This is not exhaustion.
This is consolidation within a dominant weekly structure. As long as price holds above the mid-$160s, continuation remains the higher-probability path. For income traders:
→ Consider bull put spreads below $160 (short $160 / long $150) once stabilization confirms
→ Generate premium while respecting structural support For swing traders:
→ Accumulate $170–$178
→ Add above $195 confirmation
→ Target $215–$230 next expansion leg 🔔 Trigger Weekly close back above $195 Bullish reversal candle off $170–$178 RSI turning higher through 60 💡 Catalyst Biotech sector strength Pipeline or licensing announcements Broad market risk-on rotation ✅ Bonus Filters RSI holding above 50 Price above rising 200-week SMA Relative strength vs biotech index Volume expansion on breakout | 
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