Tons of stocks are on the verge of making major moves, if they haven't started one already. Among the most compelling are Akorn Inc. (AKRX), Arena Pharmaceuticals, Inc. (ARNA), Mesa Air Group Inc. (MESA), and Anthracite Capital, Inc. (AHR). Here's a more detailed look at each chart.
It's in the red today, but the overall trend for
Arena Pharmaceuticals, Inc. (
ARNA) is a bullish one.... and appears to be getting more bullish. If the stock can get over the hump at $5.60, then the fireworks could really start.
The key to further breakout pressure is actually Friday's action - it was a 'wash and rinse' day for ARNA. By that, we just mean the deep low followed by the sharp high likely meant any sellers on the fence dumped their stock, and any buyers on the fence got in. The wild swing effectively - on high volume - shrugged off any dead weight Arena Pharmaceuticals (good and bad), and renewed the prior trend.
The rising support line that extends all the way back to April's low is not only a stop level, but would also be a good entry point... if Arena Pharmaceuticals shares fall back that far. A breakout above $5.60 would also be trade-worthy for ARNA.
Akorn Inc. (
AKRX) could have a bullish or a bearish immediate future - the chart's setup hasn't fully materialized yet. Something's got to give soon though, which should lead to a breakout or breakdown.
AKRX is establishing a classic triangle pattern (which we've seen from hundreds of stocks lately). This particular wedge should come to a point within the next three weeks or so, though Akorn Inc. shares are apt to break one line or the other before the two lines actually intercept. Whichever direction that is will be the higher-odds way to trade it.
If it's a bullish breakout, we'll just start with a target of $2.64 or so for AKRX. If instead it's a breakdown, Akorn's April low around $0.75 would be a good downside target.
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Like Arena Pharmaceuticals,
Anthracite Capital, Inc. (
AHR) is in the red today, but may have also already done enough bullish work that it's worth stepping into... sometime soon. Today may not be the day though, as it's still a little overbought and pointed in the wrong direction.
Anthracite Capital shares have already broken past the bullish side of their triangle pattern, on some heavy volume to boot. The move may have been a little too strong though, particularly after today's even-stronger opening price from AHR. The heavy lifting has been done though.
We're not going to set any kind of target for Anthracite Capital, since there's no meaningful base, support, or resistance in its recent past. Play it by ear, and as we said, this is one to be patient with.... let it fall back, and then get in on the way back up... the second leg of the breakout.
Finally,
Mesa Air Group Inc. (
MESA) is our only bearish setup with this batch of stocks. It's a classic case of a range-bound stock that raced up to the resistance side of a channel, and is being returned to the lower side of the same channel. It's a small breakdown, but a breakdown all the same.
Truth be told. MESA actually went a little beyond the upper boundary with the recent peak of $0.36. We've seen four straight days of losses since then though, so it's not as if the stock's testing the breakout waters.
From here, we simply expect to see Mesa Air Group shares work their way back to the support line at $0.15, though it will certainly be higher than that by the time the stock actually gets there.... maybe $0.18?
If you'd like to know of any changes in our opinion of AHR, MESA, AKRX, or ARNA (or if we officially recommend them as trades),
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