Why is it that you never hear about big stock moves until they're well underway? It stinks. So, to combat that annoyance, here's a closer look at Arena Pharmaceuticals, Inc. (NASDAQ:ARNA), Hemispherx BioPharma, Inc. (AMEX:HEB), and Cyclacel Pharmaceuticals Inc. (NASDAQ:CYCC). All three are close to major moves, but none of them have actually started those moves yet. In other words, you've still got a chance at making trading use of these brewing moves.
If the name Arena Pharmaceuticals, Inc. rings a bell, it may be because I took a technical look at it back on March 18th, and then again on April 2nd. The gist was the same both times though... ARNA is knocking on the door of horizontal support at $7.80, and should the stock slide under that floor, then the selling fireworks could really get going.
It doesn't appear anything's changed in the meantime, but take a closer look at the chart of ARNA. The 50-day moving average line (purple) is holding the bulls down, giving the bears some time to do some damage under the surface. That's why a move under that support line could be such a huge problem and a bearish catalyst. It's still not clear when - or even if - this meltdown will materialize, but Arena Pharmaceuticals is worth putting on your watchlist just in case.
Things aren't all almost-bearish, however. Take Hemispherx BioPharma, Inc. for instance. A week and a half ago when HEB shares roared back above their 50-day moving average line for the first time since December. Problem: There was no follow-through - not even a hint of it.... until now.
Thanks to today's bullish bump on rising volume, the tide's turned in favor of HEB again. Given the renewed uptrend after such a drubbing over the first few months of the year, the potential upside got a lot more solidified today. The clincher will be if Hemispherx BioPharma shares make a second higher close; higher volume for that second higher close would be even better.
Last but not least, be wary if you're a current shareholder of Cyclacel Pharmaceuticals. The stock's been falling since mid-March, but didn't reach critical levels until Friday when CYCC bumped into the key 200-day moving average line. Although it pushed up and off that long-term line then, the bears are back at it again today, really putting that floor to the test.
The bearish catalyst for CYCC will be a close [though two would be better] under the 200-day moving average line at $5.01. Cyclacel Pharmaceuticals is there right now, but the bull/bear battle seems to be at a stalemate. The bigger underlying momentum is still bearish though, and the odds favor a breakdown. Under the 200-day average, there's nothing to prop it up.
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