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

By  +Follow January 27, 2014 8:25AM
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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


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Results for ARIA
FinSentS NASDAQ
31 Mar 15 07:37:23
$ARIA:US Ariad Pharmaceuticals Sees Large Decline in Short Interest (ARIA) #ARIAD PHARMACEUTICALS INC http://t.co/1WX7MrTgCa #NASDAQ
StockAviator.com
31 Mar 15 07:27:59
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31 Mar 15 06:53:22
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Phil Martin
31 Mar 15 06:00:57
$ARIA http://t.co/rcTdEjC92q
Like2trade
31 Mar 15 05:03:53
Biotech watch $IMGN (upgrade $12 tgt) $aria (3 green candles) $ONVO (new 52 wk low) $BCRX (govt contract 4 ebola) #stocks #biotech #trading
Like2trade
31 Mar 15 04:39:04
Biotech to watch this morning $IMGN (upgrade $12 tgt) $aria (3 green candles) $MNKD (crossed 15 day ma--up) $ONVO (new 52 wk low yesterday)
Capital Market Labs
31 Mar 15 02:10:24
$ACOR vs. $NLNK vs. $ARIA vs. $EBS Compared Across 9 Critical Measures Chart: http://t.co/9oMpgKkPgm
US Banking News
30 Mar 15 23:42:23
Ariad Pharmaceuticals Sees Large Decline in Short Interest $ARIA http://t.co/WZWZQ4xdIV
Penny Stockington
30 Mar 15 23:38:16
Our Penny Stock Pick On $THCZ Is Up Over 400% So Far! Big News: http://t.co/SlU3u7rKnL $FASC $ARIA $TUCN
Ticker Report
30 Mar 15 23:26:27
Ariad Pharmaceuticals Sees Large Decline in Short Interest $ARIA http://t.co/dYihVSCHcr
Capital Market Labs
30 Mar 15 22:42:11
$NLNK vs. $ARIA vs. $GHDX vs. $MDXG Compared Across 9 Critical Measures Chart: http://t.co/upRc923Ab7
SmallCaps
30 Mar 15 22:24:28
Review of Timothy Sykes book: An American Hedge Fund: http://t.co/AKjszqM28B $AMOT $ARIA $BDR $CAMT $CDZI $DGLY $FSI $INTT $MNDO $NVEE
Stock Dawgzz
30 Mar 15 21:49:07
Our Penny Stock Picks On $THCZ & $RCGP Gained A Combined 700% so far! Blog Update: http://t.co/g3eVEaITz6 $FASC $ARIA $TUCN
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30 Mar 15 20:29:46
Platinum Members Saw Penny Stock Picks Gain Over 1400% In 4 Months! Go Platinum: http://t.co/PsSamxBW6M $FASC $ARIA $TUCN
StockenheimerSchmidt
30 Mar 15 20:03:48
$PPCH Gained As Much As 1005% Within 3 Days! Market News: http://t.co/oGWehWIJji $FASC $ARIA $TUCN
GoGoBio
30 Mar 15 19:11:07
RT @dougheuringaria: Citi Removing $ARIA $ARQL $SUPN Least PreferredWe are removing ARIA, ARQL and SUPN because we have discontinued covera…
Stockaholics
30 Mar 15 18:58:44
Our Penny Stock Alerts Gained Over 1400% In Just Over 4 Months! Subscribe today: http://t.co/w9IKB0aLmu $FASC $ARIA $TUCN
Lusitanian Traders
30 Mar 15 18:19:52
ARIA - Pivots (support and resistance - intraday) $ARIA http://t.co/D07lGKRZqR
Trader News Daily
30 Mar 15 17:10:32
Wow http://t.co/PeRPkYu8Uk just posted last weeks results. +429%. Crazy. They offer a free trial too. $BSBR $ARIA $GALE $NBG $MHR
Sam
30 Mar 15 16:50:09
A few more of interest: $AMBA $ADXS $AAL $AMGN $AMZN $ARIA $ARRY $ASHR http://t.co/bh923uwZvq http://t.co/BTiknKGiQl
leahanne
30 Mar 15 16:06:10
Volume Alert - ARIA 8.56 Ariad Pharmaceuticals $ARIA Hit a high today of 8.69 Closing the day 03/30/15 at 8.56 http://t.co/UXhQnqpznK
leahanne
30 Mar 15 16:05:48
$ARIA Volume Alert - ARIA Stock 8.56 Ariad Pharmaceuticals $ARIA Hit a high today of 8.69 Closing the day 03/30/15 a http://t.co/rLF0YnuSIs
Greg David
30 Mar 15 15:49:40
http://t.co/RMvVXnJDpv does trade alerts differently than anyone else. Its super cool. $ARIA $HT $CIM $BAS $ARNA
deafdaytrader
30 Mar 15 15:39:03
$ARIA nice and might run more cuz of SCTR is 88.9
Rosner Stocks
30 Mar 15 15:01:04
$ARIA News Updated Monday, March 30, 2015 5:01:03 PM $TEO $VTI $XLV $CENX http://t.co/yYtBkGs7B0
IH News Desk
30 Mar 15 14:54:14
$TEO Financials Updated Monday, March 30, 2015 5:12:39 PM $ARIA $BHP $HPQ $VOIS http://t.co/TsiErfd0eZ
Langan Stocks
30 Mar 15 14:53:05
$HALO Stock Forum Updated Monday, March 30, 2015 5:04:55 PM $ZIOP $TAN $ARIA $SLI http://t.co/4mdJYbeTMh
Capital Market Labs
30 Mar 15 14:41:33
$ARIA vs. $CBPO vs. $MACK vs. $FGEN Compared Across 9 Critical Measures Chart: http://t.co/lk6mEuAC7f
iHangout
30 Mar 15 14:27:38
chartguy89: 2015 Trending Stocks: ARIA +2.03% Stock Charts $ARIA Ariad http://t.co/nFyBLlyUH7
Stock_Tracker
30 Mar 15 14:26:36
Ariad Pharmaceuticals (ARIA) 8.56 $ARIA Big Selloff on Wall Street as Stocks Plummet on Fed Jitters at The Str http://t.co/JXfNeSwfsm
chartguy89
30 Mar 15 14:25:44
ARIA +2.03% Stock Charts $ARIA Ariad Pharmaceuticals Inc. (NASDAQ) Last Updated: 03/30/2015 16:25:48 ARIA Stoc http://t.co/gn8eD05D5r
pissoff
30 Mar 15 13:58:36
@iid_investor only an idiot would short $ARIA. Are you an idiot?
$Stocknewsalerts
30 Mar 15 13:28:24
$ARIA ALERT: New ARIAD Pharmaceuticals, Inc. SEC Filing From our Stock News Alerts App
Baffoe K8B Awotwi
30 Mar 15 13:28:13
$ARIA - Statement of Changes in Beneficial Ownership (4) http://t.co/nSm7FvKGW2
StockNews
30 Mar 15 13:28:11
$ARIA - Statement of Changes in Beneficial Ownership (4) http://t.co/GuO6k3Xnkg
Stocks News&Markets
30 Mar 15 13:28:10
$ARIA - Statement of Changes in Beneficial Ownership (4) http://t.co/ZgeAlx8Ebq
NASDAQ
30 Mar 15 13:28:04
$ARIA - Statement of Changes in Beneficial Ownership (4) http://t.co/N7YztndJ2e
dailystockplays.com
30 Mar 15 13:24:47
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Insider Alerts
30 Mar 15 13:23:04
NEW insider transaction on $ARIA reported a moment ago: http://t.co/8HSK7s4PbL
Trader News Daily
30 Mar 15 13:22:13
Wow http://t.co/PeRPkYu8Uk just posted last weeks results. +429%. Crazy. They offer a free trial too. $BSBR $ARIA $GALE $NBG $MHR
Stock Rocket
30 Mar 15 12:46:23
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Thomas Collins
30 Mar 15 12:33:55
$ARIA Does This ARIAD Pharmaceuticals, Inc. (ARIA) Rally Have Legs? http://t.co/42NdLCZQjt
Speculator
30 Mar 15 11:01:15
people are shorting $ARIA
pissoff
30 Mar 15 08:15:05
$ARIA breaks resistance. Rallying!! $azn $shpg $cndo $RTRX $abbv $mrk $gsk $azn $bsx $pfe #news #BreakingNews $krft
pissoff
30 Mar 15 08:12:25
$ARIA breaks resistance. Rallying!!!! $azn $shpg $cndo $RTRX $abbv $mrk $gsk $azn $bsx $pfe #news #BreakingNews $krft
pissoff
30 Mar 15 07:58:40
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30 Mar 15 07:48:33
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pissoff
30 Mar 15 07:38:48
$ARIA at new HOD. Buyout soon?!!!! $azn $shpg $cndo $RTRX $abbv $mrk $gsk $azn $bsx $pfe #news #BreakingNews $krft
stockschamp
30 Mar 15 07:10:05
$71,000 in ONE TRADE!! By Follwing Their Signals More Info Here http://t.co/8WvnrVmkBS .. $FASC $ARIA $TUCN
Harry Walkman
30 Mar 15 07:04:52
$ARIA Company Update (NASDAQ:ARIA): Ariad Pharmaceuticals, Inc. Announces ... http://t.co/edPUjFt40s
				
				
By  +Follow January 27, 2014 8:25AM
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