Akorn is coming near to an important resistance and could be driven into a correction phase.

From a fundamental viewpoint, the company offers interesting sales growth for the coming years but according to analysts, profitability will not keep up as net margin is expected to decrease in 2014. Moreover, putting aside 2014 P/E at 47 times estimates, the groups seems overvalued compared to its peers when looking at 2015 one which stands at 24.5 times estimated EPS.

Graphically, stock prices evolve into a trading range between USD 21 and USD 28, the last acceleration as brought the stock back to the top of this range. This level should play its full role and price progression should stop. Moreover, it might engage some profit taking from investors riding the technical rebound.

Therefore, the proximity of mid-term resistance suggests a consolidation or a correction phase in the coming sessions. The most offensive will open a short position at current prices where others will wait to be close to USD 27.8 to target a return on the USD 23.9 support. They should protect the position with a stop loss set above USD 27.8 in case of a further acceleration.