logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

 


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

By  +Follow January 27, 2014 8:25AM
Share:
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.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for ARIA
Fred Simpson
5 Jul 15 02:09:38
RT @lancejepsen: Brokerages Set Ariad Pharmaceuticals Price Target at $7.40 $ARIA - Ticker Report http://t.co/AUIw41Kty5
Stock Dawgzz
4 Jul 15 21:38:30
Our Platinum Subscribers Saw Their Penny Stock Alerts Gain Over 200% In 2 Weeks! Big Update: http://t.co/Lhta1y8KaK $FASC $ARIA $TUCN
Alpha Maven Alerts
4 Jul 15 18:58:49
$ARIA active, relative volume: 5.17, 1H, 10:00 PM, #nasdaq
Rosner Stocks
4 Jul 15 18:51:09
XLP Consumer Staples Select Sector SPDR Dividend http://t.co/IweKQkhMY8 $XLP $ARIA $SH $MNKD #XLP #stocks #pennystocks
lookn4wins
4 Jul 15 18:51:05
XLE Energy Select Sector SPDR Bid Size http://t.co/quen0H79bq $XLE $ED $ARIA $TRX #XLE #nasdaq #stockmarket
clayton
4 Jul 15 18:51:04
ZIV VelocityShares Daily Inverse VIX Medium Term ETN Message Board Posts http://t.co/fzagWWCyGf $ZIV $NKE $DUK $ARIA #ZIV #pennystocks…
jim50
4 Jul 15 18:51:02
XGD.TO iShares CDN S&P/TSX Global Gold Index Fund Financials http://t.co/eNUMfX1zro $XGD.TO $XLB $ARIA $TQQQ #XGD.TO #share #tradeideas
Investors Hangout
4 Jul 15 18:49:34
WMIH WMI Holdings Corp. Short Sales http://t.co/BcIEmj8d9x $WMIH $GM $GM $ARIA #WMIH #invest #nasdaq
Stock_Tracker
4 Jul 15 18:48:32
WMIH WMI Holdings Corp. Bid Size http://t.co/ZCIL4gawaq $WMIH $NEM $ARIA $MCD #WMIH #stock #finance
nasdaqfan
4 Jul 15 18:48:08
UUP PowerShares DB US Dollar Index Bullish Fund Short Sales http://t.co/djT9Ff6moi $UUP $ARIA $TRX $TBF #UUP #pennystocks #nasdaq
Rosner Stocks
4 Jul 15 18:48:08
UUP PowerShares DB US Dollar Index Bullish Fund Exchange http://t.co/cohYrsFz5m $UUP $CAT $TSLA $ARIA #UUP #pennystocks #stock
lookn4wins
4 Jul 15 18:47:04
UTX United Technologies Corp. News http://t.co/nRxBn986pX $UTX $AXP $ARIA $SOXL #UTX #tradeideas #stock
lookn4wins
4 Jul 15 18:46:33
TSLA Tesla Motors Inc. Shares http://t.co/3J2EWrZo6G $TSLA $ARIA $T $DXJ #TSLA #investing #pennystocks
nicholas
4 Jul 15 18:46:32
stock_forums: SLW Silver Wheaton Corp. Last Trade http://t.co/9iEGeMCM0M $SLW $HSY $ARIA $VLTC #SLW #tradeideas… http://t.co/Z2kvWGlcTg
Lucky Jimmy
4 Jul 15 18:45:21
SOXL Direxion Daily Semiconductor Bull 3x Shares EOD Data http://t.co/djiu9eIBCo $SOXL $ARIA $NSRPF $SCTY #SOXL #stocks #invest
Stock Forums
4 Jul 15 18:45:12
SLW Silver Wheaton Corp. Last Trade http://t.co/3Bd1dqKPt9 $SLW $HSY $ARIA $VLTC #SLW #tradeideas #finance
Rosner Stocks
4 Jul 15 18:45:11
SRDX SurModics, Inc. Last Trade http://t.co/GzkxtBWapX $SRDX $IDT $FEYE $ARIA #SRDX #pennystocks #stockmarket
clayton
4 Jul 15 18:45:10
SLTD Solar3D, Inc. Change http://t.co/rw9PPXY40k $SLTD $MJMJ $TRX $ARIA #SLTD #share #invest
clayton
4 Jul 15 18:43:33
RIG Transocean, Inc. % Change http://t.co/w9HVwmqNQL $RIG $ARIA $TBF $CSCO #RIG #tradeideas #stock
Lucky Jimmy
4 Jul 15 18:43:33
RDUS Radius Health, Inc. Market Cap http://t.co/WNTGAeYwwj $RDUS $ARIA $PVG.TO $LQD #RDUS #finance #investing
Jake13
4 Jul 15 18:42:12
O Realty Income Corp. Filings http://t.co/vU4Oco7FaP $O $VLTC $ARIA $BIB #O #stocks #pennystocks
Rosner Stocks
4 Jul 15 18:40:41
LOW Lowes Companies, Inc. Last Trade http://t.co/hiftC9Mrin $LOW $ARIA $DXJ $XLB #LOW #nasdaq #pennystocks
jim50
4 Jul 15 18:40:35
MHYS Mass Hysteria Entertainment Co. Ask Size http://t.co/cfB6bpmJh3 $MHYS $ARIA $SDRL $XON #MHYS #pennystocks #stock
lookn4wins
4 Jul 15 18:40:03
KRE SPDR KBW Regional Banking Index ETF Filings http://t.co/GxdEuk1nBD $KRE $ANTH $ARIA $RSX #KRE #stockmarket #finance
DennyT
4 Jul 15 18:40:03
KBE SPDR KBW Bank Index ETF Last Trade http://t.co/MeW5hI1TYN $KBE $ARIA $PDFS $DBA #KBE #tradeideas #invest
lookn4wins
4 Jul 15 18:40:03
KO Coca Cola Co. Chart http://t.co/qlvN2YMeyP $KO $T $MCK $ARIA #KO #invest #tradeideas
Emylers
4 Jul 15 18:40:02
IWM Russell 2000 iShares Quotes http://t.co/iK7KTqGNU5 $IWM $KOOL $ARIA $ALNY #IWM #investing #pennystocks
lookn4wins
4 Jul 15 18:39:15
HJOE Hangover Joe's Holding Corp. Investor Opinions http://t.co/qgywUqvGIo $HJOE $SCO $BLUE $ARIA #HJOE #stockmarket #finance
danrocks
4 Jul 15 18:39:12
IIM Invesco Value Municipal Income Trust P/E Ratio http://t.co/fgnmZPB0Hl $IIM $IWM $IBM $ARIA #IIM #stock #stock
nasdaqfan
4 Jul 15 18:38:05
HD Home Depot, Inc. Current Price http://t.co/tUfsKoJZxZ $HD $TAN $DXJ $ARIA #HD #share #share
IH News Desk
4 Jul 15 18:36:17
FTNT Fortinet Inc. Bid http://t.co/lAj6XMQjvh $FTNT $ARIA $XLU $SLV #FTNT #pennystocks #share
Jake13
4 Jul 15 18:36:07
FXB Currency Shares British Pound Sterling Trust Day Low http://t.co/SPQ2ekGjkr $FXB $XDV.TO $FXE $ARIA #FXB #nasdaq #share
Rosner Stocks
4 Jul 15 18:36:07
FB Facebook, Inc. Ex-Div Date http://t.co/CbflyfDGvv $FB $MJMJ $PRTA $ARIA #FB #pennystocks #finance
DennyT
4 Jul 15 18:34:35
DWTI VelocityShares 3x Inverse Crude ETN Filings http://t.co/wxO5LKAK2w $DWTI $NSRPF $ARIA $ALXN #DWTI #stock #investing
danrocks
4 Jul 15 18:34:04
DXJ Wisdom Tree Japan Hedged Equity E.P.S. http://t.co/Uda4c0HJud $DXJ $ARIA $PG $TBT #DXJ #stocks #invest
PolgarStocks
4 Jul 15 18:33:33
DPZ Domino's Pizza Group LTD Financials http://t.co/eCdmW8vHv2 $DPZ $ARIA $TD.TO $MCD #DPZ #share #stocks
DennyT
4 Jul 15 18:33:17
ARIA ARIAD Pharmaceuticals, Inc. Bid Size http://t.co/eZ2XjxSYze $ARIA $KLH.V $GLD $FXB #ARIA #invest #invest
Stock Forums
4 Jul 15 18:33:12
ARIA ARIAD Pharmaceuticals, Inc. Financials http://t.co/LEfguKNZHz $ARIA $HAE $TECL $HOU.TO #ARIA #nasdaq #investing
Rosner Stocks
4 Jul 15 18:33:09
ARIA ARIAD Pharmaceuticals, Inc. 52Wk High http://t.co/3odS8NqRmA $ARIA $IWM $TAN $DD #ARIA #investing #finance
Emylers
4 Jul 15 18:33:07
ARIA ARIAD Pharmaceuticals, Inc. Last Trade http://t.co/H4jxJQ1NI2 $ARIA $HOD.TO $CYBR $TASR #ARIA #investing #stocks
DennyT
4 Jul 15 18:32:04
ARIA ARIAD Pharmaceuticals, Inc. Quotes http://t.co/2E9C84kXAk $ARIA $UTHR $SCO $RY.TO #ARIA #pennystocks #investing
Stock Forums
4 Jul 15 18:31:34
ARIA ARIAD Pharmaceuticals, Inc. Ex-Div Date http://t.co/iTJzKeACcp $ARIA $INTC $QLD $IDT #ARIA #stocks #stocks
Emylers
4 Jul 15 18:31:33
ARIA ARIAD Pharmaceuticals, Inc. Ideas http://t.co/oaotAtaPoi $ARIA $AAPL $VLTC $TBRA #ARIA #stockmarket #stockmarket
clayton
4 Jul 15 18:31:33
ARIA ARIAD Pharmaceuticals, Inc. Yield http://t.co/nV9qvOP1DZ $ARIA $GILD $FXI $FXA #ARIA #nasdaq #pennystocks
jim50
4 Jul 15 18:31:33
ARIA ARIAD Pharmaceuticals, Inc. Ideas http://t.co/sMpwYOKeu1 $ARIA $IVV $UNGS $AGEN #ARIA #share #share
clayton
4 Jul 15 18:31:32
ARIA ARIAD Pharmaceuticals, Inc. Chart http://t.co/lkTO8eF7GS $ARIA $AAPL $CNC $JNJ #ARIA #invest #finance
すたやますたお
4 Jul 15 16:46:26
$ARIA? エレキベース 型式不明 http://t.co/Ml7u9BX3s9 #ヤフオク いいねえ……
PolgarStocks
4 Jul 15 15:12:39
$DIA News Updated Saturday, July 4, 2015 6:06:46 PM $SBUX $XOM $FXE $ARIA http://t.co/qRVzgJaAC3
PolgarStocks
4 Jul 15 14:12:07
$TSLA Financials Updated Saturday, July 4, 2015 5:06:51 PM $XOM $ARIA $XLK $EWH http://t.co/qgfxnY61yH
PolgarStocks
4 Jul 15 13:12:10
$XLU News Updated Saturday, July 4, 2015 4:06:40 PM $TNA $OPK $ARIA $MNKD http://t.co/y2W3FnqsRg
				
				
By  +Follow January 27, 2014 8:25AM
Share:

Comments

 

blog comments powered by Disqus

 

 Today's Must Reads

Microsegmentation: The Future of Cybersecurity?


How this Playboy Playmate Became a Better Stock Trader Than You

Long Term Rates Are On The Up…What’s Next?

The Modern Web: So Many Ways to Invest in Wireless Mobile Stocks

It's Time for the Rest of the Country to Legalize Weed

 

Do you expect a 10% correction by the end of 2015? in Equities.com Polls on LockerDome

About us

Equities.com is an advanced financial data portal and social network designed to connect self-directed investors with the world’s most innovative startup and small cap companies. Through our in-depth coverage of small cap markets, comprehensive research and stock valuation reports, state of the art issuer products, and world class events, Equities.com provides the social tools and insight that drive tomorrow’s investment relationships and opportunities.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.

Login or Register

LOG IN