Arena Pharmaceuticals (ARNA) : Break kumo and let the speculation begins

Arena Pharmaceuticals has started to break out of its resistance and is now heading higher.

One of the early catalyst was ARNA signing up with a marketing or sales partner.

And the second catalyst is FDA assessment of Vivus drug potential ( Note : Vivus is ARNA competitor).

The key thing to note here is good news for any of the drug company is good news for the industry. In this case, Vivus, ARNA will benefit from the same positive news.

Currently, ARNA is trading at around 4.39 and I believe there is still time to play this game. I recall ARNA is only due for review in September.

Myself, I have bought Oct $3 CALLs way back in May-June period.

Do note that as with all stocks that relies on FDA approval, there is a high chance that things do not work out well and the price will head south.

Arena Pharmaceuticals (ARNA) : Challenging Kumo Resistance

After consolidating falling and consoidating for almost a year, ARNA is making some move today.

It has break through its resistance at 3.18 and has went above the Kijun sen.

At this moment, it falls short of breaking through the kumo. A break above it will signal a very strong bullish move.

Kumo resistance at 3.38

Arena Pharmaceuticals (ARNA) : Possible new bullish trend

ARNA post a good gain of over 8% yesterday with more than 5M volume (vs 1.85M average).

On the chart, we can see a strong bullish white candle which represent a reversal of its downtrend.

Continue reading Arena Pharmaceuticals (ARNA) : Possible new bullish trend