If you're looking for some trading action on Tuesday, then you'll want to start your search with Arena Pharmaceuticals, Inc. (NASDAQ:ARNA), Rexahn Pharmaceuticals, Inc. (AMEX:RNN), and Anthera Pharmaceuticals Inc. (NASDAQ:ANTH). Here's what you need to know, and need to look for.
If the name Rexahn Pharmaceuticals, Inc. rings a bell, it may be because I pointed out how it was a budding bullish play back on the 3rd. Specifically, I noted how it was persistently attacking a resistance line at $0.33. Well, it's only been two trading days (three counting today) since I took that look, but as of yesterday, the stock's punched through that ceiling, and done so on higher volume.
The nearby chart of RNN tells the tale, though it can't quite do the opportunity justice. What you can't see is how Rexahn Pharmaceuticals shares were trading in the $0.50's in the middle of last year. There's a lot of room to run before this chart starts to hit any real resistance.
At first glance, Anthera Pharmaceuticals Inc. looks volatile, though not necessarily bullish. If you take a closer look at the chart, however, you can see how ANTH is subtly, quietly waking up after a couple of months' worth of slumber. Better still, you can also see why (and it's a very solid reason).
As of last week, it's become evident there's a horizontal floor for ANTH at $0.58. That was the level that stopped the bleeding after the November plunge, but that was also the level that sparked the current rally as well when it was brushed back on December 28th. But, the tide fully turned yesterday when Anthera Pharmaceuticals fought their way above the 50-day moving average line. It's a small victory, but a victory made much bigger by the fact that the stock managed to advance while the broad market was declining.
Finally, though it may technically - visually - be the least compelling name of the three stocks in question here, I still believe Arena Pharmaceuticals, Inc. is the biggest and best opportunity of the three names in focus.... if I can just get the right nudge. How's that? Because ARNA has been brewing up something for months, and after this long of a consolidation period, once the pent-up energy is released, it's going to be unleashed with a vengeance.
The chart below makes the point pretty well. The bulls and the bears have been in something a stalemate since August, with the primary battle line being the resistance line at $9.41. The ARNS bulls keep chipping away, however, and as of December the key moving average lines have finally stepped up as a support level. That's the key different now that we hadn't seen from Arena Pharmaceuticals before. Though the $9.41 hurdle still needs to be cleared before we have that green light, the odds say it's going to happen sooner than later. Be ready.