Trade Ideas: MELA, ARNA, DNDN

MELA Sciences, Inc. (NASDAQ:MELA) had a great move on the upside today and closed at $2.67. The stock is setting up to break out and has one more level to go, which is $2.72. MELA Sciences is a well capitalized company, with $1.03 in cash per share. This stock has a short interest ratio of 14.3 based on average daily volume of 300.000 shares and 3.575 million shares short. This stock could be a good short squeeze opportunity on any positive news. From a technical perspective, MELA is back to bull market rally with MACD on top of 0 and %K line on top of %D line. The stock has good upside potential, so keep watching the stock for further moves. Watch the stock on today, because once it breaks through, it will run fast.

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Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) had a pullback into a strong support area, but it held up reasonably well. I still like the chart and will watch the stock again today. Resistance stays at $1.75 for the follow through move. Once it breaks this resistance level, we could see a quick increase in buying as momentum traders jump into this trade.

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Dendreon Corporation (NASDAQ:DNDN) failed to close above the resistance level of $38.20. This resulted in a sharp drop today. The recent price patterns suggest that the downward move could continue. A decline to the 36.86-36.50 range appears likely. A close below $36.68 would impart further weakness and would push the stock to the $34.90-$35 range.

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Disclaimer : This is not an investment advisory, and should not be used to make investment decisions. Information in AC Investor Blog is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The charts provided here are not meant for investment purposes and only serve as technical examples. Don’t consider buying or selling any stock without conducting your own due diligence.
About Antonio Costa 325 Articles

Antonio Costa is a 35 year old part-time trader who trade stocks in the US market.

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