Elan

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Nearest Resistance: $10.60
Nearest Support: $9.40
Catalyst: Drug Sale

Last up is Elan ( ELN). The Irish drug maker got shellacked yesterday after announcing that it was selling its crown jewel pharmaceutical, multiple sclerosis treatment Tysabri, for $3.25 billion in cash. The move leaves Elan with huge cash reserves in its coffers, but without its most lucrative drug. Investors reacted by selling off shares by more than 7%.

Even though ELN is rebounding today, this stock is still well below where it opened yesterday. More importantly, shares remain definitively in the downtrend that they've been stuck in for months now. How management opts to use that huge cash balance in 2013 will to determine this stocks trajectory. But for now, I'd recommend staying arm's length away from Elan.

To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.

-- Written by Jonas Elmerraji in Baltimore.

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At the time of publication, author had no positions in stocks mentioned.

Jonas Elmerraji, CMT, is a senior market analyst at Agora Financial in Baltimore and a contributor to TheStreet. Before that, he managed a portfolio of stocks for an investment advisory returned 15% in 2008. He has been featured in Forbes , Investor's Business Daily, and on CNBC.com. Jonas holds a degree in financial economics from UMBC and the Chartered Market Technician designation.

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