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Ariad Pharmaceuticals (ARIA) Plummets on Signs it's Overbought

By  +Follow January 27, 2014 8:25AM
Tickers Mentioned:

The buyout rumor giveth, the buyout rumor taketh away.

Shares in Ariad Pharmaceuticals (ARIA) dropped again on Monday, giving up much of the 11 percent gain from Friday. Ariad actually gapped up almost five percent to start the day before starting to plunge about 15 minutes after the markets opened, ultimately shifting to a loss of about 9 percent by early afternoon.

Rumored Buyout May Not Materialize

Potentially driving the loss was an article by TheStreet’s Adam Feuerstein that cited an anonymous institutional investor who was shorting the stock as saying that Friday’s buyout rumors were unfounded. "A takeover of Ariad by any Big Pharma would be career suicide for the business development guy proposing such a deal," this investor told Feuerstein. The investor also cited the potential for competition from Novartis’ (NVS) myeloid leukemia treatment that fills a similar role to Ariad’s Iclusig.

Technical Signs Indicate ARIA Overbought

However, the more-likely source of the plunge can be found in technical factors that would seem to indicate the stock was overbought. Since its dramatic October plunge after the FDA pulled Iclusig on blood clotting concerns, and several months of back-and-forth swings on very heavy volume, Ariad has been staging a strong rally that has placed it among the best performers in its industry of the last two months.

Ariad’s heavy daily volume would indicate that this small-cap company has become something of a battleground stock, and clearly one most traders are watching. And, as such, the more likely explanation for today’s sell-off can be seen in the stock’s relative strength index (RSI) crossing 70 this morning, a technical sign that traditionally indicates a stock is overbought.

The stock also flirted with an RSI of 70 twice in late December and earlier this month, with a sell-off following soon after on both occasions. Volume today was once again very high, clearing 70 million shares by 2:30pm. With a short float of close to 25 percent, it’s clear that Ariad remains a focal point for bullish and bearish traders alike.

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Results for ARIA
Breaking News Now
1 Dec 15 01:03:02
$ARIA: Short Interest in Ariad Pharmaceuticals Drops By 4.3% (ARIA): https://t.co/sxWlPaWZsP
1 Dec 15 00:55:25
Short Interest in Ariad Pharmaceuticals Drops By 4.3% $ARIA https://t.co/fcGPZd9sJE
Dakota Financial
30 Nov 15 23:56:44
Ariad Pharmaceuticals Sees Large Decline in Short Interest $ARIA https://t.co/jXBmAjqQxf
Consumer News
30 Nov 15 23:53:22
Ariad Pharmaceuticals Sees Large Decline in Short Interest $ARIA https://t.co/f7XppW9bDO #acn
Ticker Report
30 Nov 15 23:52:25
Ariad Pharmaceuticals Sees Large Decline in Short Interest $ARIA https://t.co/YUKRnprUG7
US Banking News
30 Nov 15 23:50:39
Ariad Pharmaceuticals Sees Large Decline in Short Interest $ARIA https://t.co/YBpqju8hAW
30 Nov 15 22:43:08
$TITXF Opinions Updated Tuesday, December 1, 2015 01:07:30 AM $FXI $ALXN $XRT $ARIA https://t.co/GgKUJ7iA7j
30 Nov 15 22:43:05
$TLT Stock Price Updated Tuesday, December 1, 2015 01:07:30 AM $OCAT $FSLR $GE $ARIA https://t.co/OOcx9cJT8m
IH News Desk
30 Nov 15 22:18:10
$ARIA Opinions Updated Tuesday, December 1, 2015 01:11:34 AM $MU $YNDX $MO $AUY https://t.co/3ru7NMs4Ng
30 Nov 15 21:52:02
FOMX DD 4 investors.Read here: https://t.co/7yeFtYQQ00 $AREX $ARG $ARGS $ARGT $ARH-C $ARI $ARIA $ARI-A
Rosner Stocks
30 Nov 15 21:43:36
$GGAL Company Info Updated Monday, November 30, 2015 11:59:22 PM $AA $PG $ARIA $SLW https://t.co/09eRgldMIp
Rosner Stocks
30 Nov 15 21:43:34
$HZNP Filings Updated Monday, November 30, 2015 11:59:22 PM $ARIA $GPRO $NAT $VIPS https://t.co/g1xqCIeV9s
IH News Desk
30 Nov 15 21:18:14
$VZ Investor Opinions Updated Tuesday, December 1, 2015 00:11:27 AM $VZ $CELG $TITXF $ARIA https://t.co/ach1dCs7c3
IH News Desk
30 Nov 15 19:16:07
$AEZS News Updated Monday, November 30, 2015 10:11:19 PM $P $ARIA $BMY $XOM https://t.co/isGSTktq2b
IH News Desk
30 Nov 15 18:15:35
$A Financials Updated Monday, November 30, 2015 9:11:20 PM $P $GM $SKX $ARIA https://t.co/jNMYqdkp2W
IH News Desk
30 Nov 15 18:15:34
$NG Filings Updated Monday, November 30, 2015 9:11:20 PM $EWZ $ARIA $GDX $COG https://t.co/g9R7vFrMtb
Rosner Stocks
30 Nov 15 17:42:09
$TWTR Filings Updated Monday, November 30, 2015 7:59:21 PM $VRSN $ARIA $VRSN $AMZN https://t.co/bnwvG20q7w
Paul Henry
30 Nov 15 16:52:18
$MHRC has now gained 756.25% In The Past 2 Weeks! Huge News: https://t.co/fKslN0dN7c $FASC $ARIA $TUCN
Michael James
30 Nov 15 16:51:34
$MHRC Has Nearly QUADRUPLED In Value, In The Past 2 Weeks! Special Update: https://t.co/ohkeyaXpyZ $FASC $ARIA $TUCN
Michael Cook
30 Nov 15 16:51:11
3,500% Gains On Stock Picks In 5 Months And An Amazing New Pick Is On The Way! Get It Early: https://t.co/GCmBVIIC8f $FASC $ARIA $TUCN
Stock Rocket
30 Nov 15 16:26:47
Platinum Members Have Seen Incredible Gains On Our Top Stock Picks! See Our New Picks Early: https://t.co/ro7o3SYbd1 $FASC $ARIA $TUCN
30 Nov 15 16:21:44
$NWAV Closed Up A Whopping 55.56%! Major Expectations For Next Week: https://t.co/xpW15VznHO $FASC $ARIA $TUCN
Stock Dawgzz
30 Nov 15 16:21:33
Our Winning Picks Have Multiplied As Much As 34 Times In 5 Months! See Our New Pick: https://t.co/yNmfNXSR8k $FASC $ARIA $TUCN
Penny Stockington
30 Nov 15 16:18:32
$TSTS Has Gained 336.36% In The Past 2 Weeks! Huge News: https://t.co/lZkftFE1Y4 $FASC $ARIA $TUCN
30 Nov 15 16:17:04
$TSTS Has More Than QUADRUPLED In Value In 2 Weeks! Big News: https://t.co/n8iZENteZr $FASC $ARIA $TUCN
30 Nov 15 15:27:21
https://t.co/sev065mL6D Market Proof Yourself! Article explains how!!! $AREX $AXAS $NUGN $ARIA
IH News Desk
30 Nov 15 13:48:06
SPXL Direxion Daily S&P 500 Bull 3X Shares Tick https://t.co/jTzqaxDhwq $SPXL $EUM $ARIA $NETE #SPXL #tradeideas #finance
Lucky Jimmy
30 Nov 15 13:45:07
NUGT Direxion Daily Gold Miners Bull 3x Shares Stock Message Board https://t.co/CP36wmURPS $NUGT $ATVI $ARIA $TCK/B.TO #NUGT…
Investors Hangout
30 Nov 15 13:42:04
KBIO KaloBios Pharmaceuticals, Inc. Change https://t.co/XCoo6kWsV0 $KBIO $MMM $CHK $ARIA #KBIO #nasdaq #stockmarket
30 Nov 15 12:44:50
$ARIA $KBIO $LL $RPRX Autocharts @ https://t.co/f6cpQoVS67
30 Nov 15 11:18:12
$ARIA: Earnings And Sentiment Update For ARIAD Pharmaceuticals, Inc …: https://t.co/1ssdSP6MYt
PennyStock Zone
30 Nov 15 11:10:47
https://t.co/0aD4seCQoT SuperTrades subscription for $907 per yr !!!!? BARGAIN $ARIA $PLNT $FB $STUDY
30 Nov 15 08:48:35
TV.TO Trevali Resources Corp. Exchange https://t.co/H6QCog234q $TV.TO $IWM $JO $ARIA #TV.TO #stocks #stock
30 Nov 15 08:48:13
TNA Direxion Daily Small Cap Bull 3x Shares Investor Opinions https://t.co/F9gDMvmT7A $TNA $ARIA $IWM $MCD #TNA #nasdaq #nasdaq
30 Nov 15 08:36:32
CGIX Cancer Genetics, Inc. Stock Message Board https://t.co/iV9mfa8NaC $CGIX $NMM $ARIA $KBIO #CGIX #stock #stockmarket
30 Nov 15 07:51:15
VRX Valeant Pharmaceuticals Intl, Inc. News https://t.co/oaqciPKBoU $VRX $ARIA $TWTR $JNUG #VRX #invest #tradeideas
30 Nov 15 07:48:04
SWKS Skyworks Solutions Inc. Ex-Div Date https://t.co/Gl9F0z3Uu4 $SWKS $GDXJ $HD $ARIA #SWKS #pennystocks #investing
30 Nov 15 07:46:04
SCIE Spectra Science Inc. Chart https://t.co/Hx2Mhpz6Uq $SCIE $ARIA $SCO $NOC #SCIE #pennystocks #finance
30 Nov 15 07:44:04
NAT Nordic American Tanker Shipping Ltd. Last Price https://t.co/opB2MOkt1D $NAT $ARIA $HART $NKE #NAT #stocks #finance
30 Nov 15 07:43:33
MDXG MiMedx Group, Inc. Market Cap https://t.co/UlIFYaStVa $MDXG $LNKD $ARIA $DGAZ #MDXG #pennystocks #finance
Investors Hangout
30 Nov 15 07:40:05
GS Goldman Sachs Group, Inc. Filings https://t.co/hjOnTTad6K $GS $ARIA $NFLX $XRT #GS #pennystocks #nasdaq
Lucky Jimmy
30 Nov 15 07:34:04
ARIA ARIAD Pharmaceuticals, Inc. Yield https://t.co/tzk6AVjpcc $ARIA $UCO $CSCO $SYRX #ARIA #pennystocks #finance
30 Nov 15 07:22:35
Covered Call Alert: ARIAD PHARMACEUTICALS $ARIA returning up to 32.45% through 20-May-2016 https://t.co/06wNlAWB3j
Stephen Romanowitch
30 Nov 15 07:14:02
$ARIA https://t.co/l5qiwuwwLQ
30 Nov 15 06:07:17
Ariad Pharmaceuticals Receives Average Recommendation of “Hold” from Brokerages $ARIA https://t.co/Hjqy6EL6sa
30 Nov 15 05:48:37
ULTA Ulta Salon Cosmetics & Fragrance Inc. Last Trade https://t.co/eNnsgnQGHx $ULTA $TNA $GOOG $ARIA #ULTA #investing #finance
Rosner Stocks
30 Nov 15 05:42:33
MET Metlife, Inc. Current Price https://t.co/R6MZN16dT1 $MET $ARIA $SLTD $CSC #MET #invest #investing
30 Nov 15 05:42:07
LULU lululemon athletica Change https://t.co/uE1Bfw6Zbw $LULU $NVDA $ARIA $CAT #LULU #stockmarket #stock
30 Nov 15 05:39:08
GILD Gilead Sciences, Inc. Prev Close https://t.co/X1X0VNvkHP $GILD $SBUX $ARIA $SCO #GILD #stock #finance
Rosner Stocks
30 Nov 15 05:33:17
ARIA ARIAD Pharmaceuticals, Inc. Current Price https://t.co/ktBku4FMjc $ARIA $VNQ $SUNE $XLV #ARIA #investing #share
By  +Follow January 27, 2014 8:25AM



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