ARNA - Sector: Healthcare---Industry: Biotechnology & Drugs

[Richard]

I am dead sexy...fortunately for everybody else, ARNA's obesity drug is doing well in phase II trials. There is much rejoicing.

I'm used to looking at breakouts above clear resistance, what can you teach me about stocks that make big moves up while in a steady uptrend?

[Lucas Scott]

hey Richard, this gap up looks similar to the gap ups on GOOG and ISRG, which were also in uptrends when they gapped. I've got in on my watchlist and wonder if it will base for a few days and then run like those two have. btw I owned ARNA several months back at $7 and sold for a small loss 

[Richard]

hey Richard, this gap up looks similar to the gap ups on GOOG and ISRG, which were also in uptrends when they gapped. I've got in on my watchlist and wonder if it will base for a few days and then run like those two have. btw I owned ARNA several months back at $7 and sold for a small loss 

Hmmm, intresting...the patterns do appear simular.

Thanks!

[cpezc]

ARNA is a bargain at this price. I picked it up a a couple of weeks ago at 11.97. Today it had a $20 price target reafirmed by UBS. definitely on a run.

[cpezc]

so much for my last post...lol.
anyway, it has had a sustained selloff by what looks like one seller on SIZE for the past three days and is now at 10.42.  watch time and sales for some interesting viewing.  Once this guy is gone there should be a bounce, but how much hasd he got to go? Hopefully he will disappear today and this is the bottom. there is no reason at all for this low price considering the fundamentals. huge cash in bank and killer pipeline. I still love it with a $20 target that seems justified to me.

[Melf Elf]

Possible Inverse H&S forming here.  The technicals look ready, too.  Volume was the heaviest in the Left Shoulder, next heaviest in the Head, and is very low in the Right Shoulder, so that looks good.

MACD is above zero, and coming back to test the signal line, right at zero.  That will look nice if it bounces from here on a rally.

13/21 RSIs and 34/55RSIs both are at Synchronicity, and they would bounce higher on any higher close on Monday.

Quick glance at the fundamentals...they don't look so hot.  Expectation is about $1.71 loss this year, and a loss of over $2.00 next.  If anyone has an opinion on the fundamentals, I'd appreciate it.  I don't know anything about this company.

Today it had a $20 price target reafirmed by UBS. definitely on a run.

The day after that $20 reaffirmation was a "perfect short" (if there is such a thing... ).

UBS' timing on calling that target wasn't so hot, but I'd be interested to know why they think it's worth $20, given negative earnings, if anyone can help.  Thanks in advance.

[Se7en]

It's getting ready, 11.24$ now!

[Melf Elf]

It's getting ready, 11.24$ now!

Se7en,

Yep!

Possible Inverse H&S forming here. The technicals look ready, too. Volume was the heaviest in the Left Shoulder, next heaviest in the Head, and is very low in the Right Shoulder, so that looks good.

The neckline is at 11.292 for today, August 29, so the print of 11.30 was a technical breakout.  We'd like to see it close there, or better.

The day after that $20 reaffirmation was a "perfect short" (if there is such a thing... ).

UBS' timing on calling that target wasn't so hot, but I'd be interested to know why they think it's worth $20, given negative earnings, if anyone can help. Thanks in advance.

$20 would be nice, but I'll be happy if we get to the 13.67 target that is IN PLAY. 

EDIT: It's 13.66 IN PLAY.

[Se7en]

I'll keep an eye on it and see if it can hold that 11.30, maybe i'll sell my GT to enter this one!
Melf Elf, can you 'shine your light' on GT for me plz? tia 

[Melf Elf]

I'll keep an eye on it and see if it can hold that 11.30,

Se7en,

It pulled back to 11.29 twice and now is at 11.75, up 11% today.  Volume is good.  I don't see any news on it.  UBS must have re-reiterated their $20 target.

[Melf Elf]

In addition to these good technicals that were in place at the weekend...

Possible Inverse H&S forming here.  The technicals look ready, too.  Volume was the heaviest in the Left Shoulder, next heaviest in the Head, and is very low in the Right Shoulder, so that looks good.

MACD is above zero, and coming back to test the signal line, right at zero.  That will look nice if it bounces from here on a rally.

13/21 RSIs and 34/55RSIs both are at Synchronicity, and they would bounce higher on any higher close on Monday.

... I like the fact that on Monday, ARNA planted a foot on the up trendline off the July low, validating it as support, then blasted through the neckline yesterday closing up 13.4%, at 12.00, on three times average 100 day volume.

[sebfr]

Hi,

Yesterday a Black Spinning Top was formed. This represents complete indecision between the bulls and the bears.

yesterday's close at 12
target at 9.23
stop loss at 12.48

Reward/Risk ratio of 30 / 4.3 = 6.9...Great

[Melf Elf]

"Gut check" on Thursday, when ARNA closed about six cents below the neckline, putting the 13.66 target ON HOLD. 

Friday, however, was a nice recovery at the neckline on a Bullish Engulfer, so 13.66 is back IN PLAY.  The 200DMA is just above the target, at 13.80.

Stop: the validated trendline off the 9.18 low, which is 10.943 for Monday, September 11.

[Melf Elf]

... I like the fact that on Monday, ARNA planted a foot on the up trendline off the July low, validating it as support, then blasted through the neckline yesterday closing up 13.4%, at 12.00, on three times average 100 day volume.

I also like the fact that on Thursday and Friday, after the nice breakout above the Kumo (Cloud) a week ago, ARNA came back and "planted a foot" at the 22-day Kijun-Sen (solid red line).  It was at 11.13 both days.  Thursday's low was 11.10.  The close was 11.16.  Friday's low also was 11.10, Bullish Engulfer at the close.

As it stands, that's a successful DOUBLE re-test of the neckline breakout, and of the Kijun-sen.

The 13-21 RSIs also bounced higher out of Bullish Synchronicity (next post).  This positioning is what's referred to as "ready to turn the corner above the Kumo (Cloud), and poised to go higher."  The technical chart work is done (breakout and successful re-test), so it's "good to go."

Miserable failure, if it doesn't. 

[Melf Elf]

13-21 RSIs