Ariad Pharmaceuticals

Nearest Resistance: $6
Nearest Support: $4
Catalyst: Iculsig Drama

>>3 Biotech Stocks Spiking on Big Volume

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.

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-- 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.

Follow Jonas on Twitter @JonasElmerraji

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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