Tue 31'st Jul 2018
Arena Pharmaceuticals Stock Analysis
Technical stock analysis for Tue 31'st Jul 2018
|Shorts||5.23% ( 2018-07-13 )|
Arena Pharmaceuticals gained 0.70% in the last trading day, rising from $38.32 to $38.59 The price has fallen in 8 of the last 10 days and is down by -13.42% for this period. Volume has increased in the last day along with the price, which is a positive technical sign, and, in total, 55 541 more shares were traded than the day before. In total, 592 780 shares bought and sold for approximately $22.88 million.
Arena Pharmaceuticals lies in the lower of a very wide and falling trend in the short term, and this will normally pose a very good buying opportunity. A break down the bottom trend line at $38.27 will firstly indicate a stronger fall rate. Given the current short-term trend, the stock is expected to fall -6.58% during the next 3 months and, with 90% probability hold a price between $35.75 and $44.74 at the end of this period.
A buy signal was issued from a pivot bottom point on Monday July 30, 2018, which indicates further gains until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal. Some negative signals were issued as well, and these may have some influence on the near short-term development. Arena Pharmaceuticals holds sales signals from both short- and long-term moving averages. In addition, there is a general sales signal from the relation between the two signals where the long-term average is above the short-term average. On corrections up there will be some resistance from the lines at $40.18 and $44.25. A break-up above any of these levels will issue buy signals.
Relative Strength Index (RSI)
The stock currently holds a RSI14 at 21 and is oversold on RSI14. The stock being oversold is no guarantee for instant reaction up as some stocks may be oversold for a long time. It is important to review the previous RSI-history to get an indication of the RSI-sensitiveness.
Support & Resistance
Arena Pharmaceuticals finds support from accumulated volume at $38.46.
This stock may move much during a day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be "high risk". During the last day, the stock moved $0.71 between high and low, or 1.86%. For the last week, the stock has had a daily average volatility of 3.36%.
Arena Pharmaceuticals is oversold on RSI14 (21). Some stocks may drop long and hard while being oversold on RSI before turning, which increases the general risk.
Our recommended stoploss: We hold a sell evaluation for this stock. No stop-loss set.
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Arena Pharmaceuticals holds several negative signals and is within a very wide and falling trend, so we believe it will still perform weakly in the next couple of days or weeks. We therefore hold a negative evaluation of this stock. We have upgraded our recommendation for this stock since last evaluation from a Strong Sell Candidate to a Sell Candidate.Click for Top 5 Sell Candidates