What's important for traders to understand now from a technical standpoint is that ARIA have been trending range-bound for the last two months and change, with shares moving between $6 on the downside and $9.83 on the upside. A breakout with high volume above the upper end of its recent range should be the technical magic that sends shares of ARIA skyrocketing higher.
Traders should now look for long-biased trades in ARIA as long as it's trending above some key near-term support levels at $7.35 to $6.70 a share and then once it breaks out above those key overhead resistance levels at $9.13 to $9.22 a share and then above $9.83 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 26.5 million shares. If that breakout triggers soon, then shares of ARIA will set up to re-fill some of its previous gap-down-day zone from last October near $19 a share. If ARIA gets into that gap with volume, then this stock could easily hit $13 to $16 a share.
One final technical note that I would like to point out with ARIA is that the stock has been making higher lows for the last three months for most of its pullbacks, besides the recent violation of $8.22 support. Even when ARIA hit $7.35 a share, that still formed a higher low on a longer-term timeframe. That shows that traders want this stock when it sells off, and now we just need to see confirmation of a high-volume breakout to give ARIA a chance to rip sharply higher. Keep this name on your trading radar because that move could be coming very soon.
-- Written by Roberto Pedone in Delafield, Wis.