The end of day chart looks like the big guys are leaving. Today looks much different, than the violent drop seen Friday. My theory is someone doesn't want to cause too much disruption leaving.
Arena can't seem to get past 10.30 completely rejected again this morning.
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Update -Sat June 23rd:
The reason why my short had a good chance of being executed is explained in this chart
Update -Friday June 22nd:
Covered my $arna short via puts. I figured this collapse would happen. It was a matter of supply and demand. Nothing personal against the drug. I have no position anymore. This is just a good lesson on reading the charts and picking great short positions. Take a look at all the circles I highlighted in the chart below, todays huge dropped filled all the gaps. Which is consider healthy. When a stock gaps up, what tends to happen is the gaps get filled later on, which they did in $arna.
Update -Thur June 21st:
I have the 1 minute chart updated at today's close. Gap up tomorrow or gap down? You make the interpretation.
Update -Wed June 20th:
The one minute chart is very bullish for Arena. There is no known resistance above, once $10.50 is broken expect $11 to be the next area of resistance. Just because numbers like $11 $10 $10.50 are nice numbers people like to sell into.
Disclosure: I have a small short position via puts.
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ARNA is blowing up these past two days, thought I would make this fun chart for it.
Enlarged Arena Pharmaceuticals Stock Chart with Analysis
I believe this is Arena's all time high. Take a look at the classic bullish flag pattern.
Here is my other post that I correctly called Arena's Technicals Point Down to a Slow-down in Momentum. After all it was a healthy slowdown that allowed the bollinger bands squeeze to provide enough momentum to propel Arena to new highs.
Update after today's close: I don't have a saved chart, because stockcharts.com is acting funky, but to summarize ARNA retreated from the highs of the days because today price greatly exceeded the upper bollinger band by a huge margin (it is a great indicator to tell overbought reading, better than RSI & Stochastics). This makes it more likely ARNA tomorrow will take a breather and possibly be red for the day (by how much I don't know). However if prices tomorrow continue to match today's highs of $8.65ish ARNA will not be done running.
Learn to trade in just 7 minutes a week watch this video.
I believe this is Arena's all time high. Take a look at the classic bullish flag pattern.
Here is my other post that I correctly called Arena's Technicals Point Down to a Slow-down in Momentum. After all it was a healthy slowdown that allowed the bollinger bands squeeze to provide enough momentum to propel Arena to new highs.
Update after today's close: I don't have a saved chart, because stockcharts.com is acting funky, but to summarize ARNA retreated from the highs of the days because today price greatly exceeded the upper bollinger band by a huge margin (it is a great indicator to tell overbought reading, better than RSI & Stochastics). This makes it more likely ARNA tomorrow will take a breather and possibly be red for the day (by how much I don't know). However if prices tomorrow continue to match today's highs of $8.65ish ARNA will not be done running.
Learn to trade in just 7 minutes a week watch this video.