Acorda Therapeutics Inc. (ACOR) is a stock you may want to put in your watchlist. The stock is up more than 25% on some positive news but it is the longer-term view that has my attention.

Chart Courtesy of Thomson Financial

This weekly chart shows the trading range that has contained the stock since early 2007. For over a year the shares bounced back and forth between 16 and 28. Just a few weeks ago the stock was at the lower end of the range but today's surge leaves it flirting with a breakout.

On a short-term basis the stock is hitting overbought levels as it tries to break out of the range and push to a new all-time high. The overbought condition combined with the potential selling pressure that typically sits at prior highs should act as a headwind here. I stress "should" because how the stock performs here will give us a clue to the strength of the underlying buying demand.

In other words, if we see the stock remain resilient here it would suggest that buyers are still willing and able to support the stock. One particular point to keep in mind here is short interest. Data collected by our Quantified Analysis group shows that 18% of the stock's float is sold short. If the shares can hold near these all-time highs, we might see some of shorts throw in the towel and add buying demand to the equation.