Shares of Arena Pharmaceuticals (ARNA: 6.18 -0.16 -2.52%) are very bullish with a lot of hot indicators showing up. The slope of the upward move is very steep accompanied by volume. However, as clearly seen on daily chart, the stock needs to take a breather. It cannot sustain a very steep slope forever and looking at the RSI, it has reached the overbought territory in a very sharp upmove. It seems that the breather will happen anytime soon. Things to watch out for tomorrow is the $6.75 level acting as resistance and the gap formed between 6 and 6.21. At this stage, I’m a buyer of ARNA once it breaks through this high. The stock will move quickly and can be very volatile. Watch the stock closely Tuesday and use your stops.
Banner Corporation (BANR: 2.40 +0.03 +1.27%) broke out Monday on huge volume. If this chart does what is supposed to do, it will be going higher in the days to come. Technically, the stock is in a short-term Bull Market with share price above 5, 13 and 20 daily moving averages. Let’s see if Tuesday the stock will confirm the breakout. Short-term investors can buy with a stop at $2.31 and long-term investors can hold with a stop at $2.08. Let’s keep an eye on her as i think momentum will pick up.
Allied Irish Banks (AIB: 2.5699 -0.0801 -3.02%) - The stock traded higher on Monday as the stock followed through from Friday’s move. AIB closed near highs, which tells us there is more buying. I’m a buyer of AIB once it breaks Monday’s high of $2.67 for this continuation move. If the stock can break through $2.67, we should see a strong upside move. All indicators are in favor of an upward price movement. MACD has generated a buy signal and is currently near to cross the 0 line. This momentum could push this stock much higher from here, so keep AIB on your radar for Tuesday’s trading day, as there is good upside potential in this move.
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