Nearest Resistance: $6
Nearest Support: $4
Catalyst: Iculsig Drama
Last up is Ariad Pharmaceuticals (ARIA), the small-cap pharmaceutical name that's one of the most heavily-traded names on the Nasdaq this afternoon thanks to the latest bit of drama over its Iculsig drug. ARIA is up 4.5% as I write this afternoon following news that European regulators won't be pulling the drug from the market, after the FDA suspended sales on Oct. 31.
ARIA is currently forming a textbook inverse head-and-shoulders pattern with resistance at $6. A push through the $6 level is a pretty strong buy signal for ARIA. Despite the volatility this stock has seen this year, shares could look a whole lot worse right now. If the trade does trigger, I'd recommend putting a protective stop under the 50-day moving average.
To see these stocks in action, check out the at Most-Active Stocks portfolio on Stockpickr.
-- Written by Jonas Elmerraji in Baltimore.
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.
Follow Jonas on Twitter @JonasElmerraji