Ariad Pharmaceuticals Inc (NASDAQ: ARIA)

ARIAD Pharmaceuticals, Inc., an oncology company, is engaged in the discovery, development, and commercialization of medicines for cancer patients. It offers Iclusig (ponatinib), a tyrosine kinase inhibitor for the treatment of adult patients with chronic myeloid leukemia, and Philadelphia chromosome-positive acute lymphoblastic leukemia in the United States and Europe. The company is also developing Iclusig for other blood cancers and solid tumors, such as gastrointestinal stromal tumors, acute myeloid leukemia, and certain forms of non-small cell lung cancer; and various investigator-sponsored trials in indications, including first line and second line CML, acute myeloid leukemia, non-small cell lung cancer, and medullary thyroid cancer.
Take a look at the 1-year chart of ARIAD (Nasdaq: ARIA) below with added notations:

ARIA has been trading in a broad, sideways range for the last 4 months, while forming a common pattern known as a rectangle. A minimum of (2) successful tests of the support and (2) successful tests of the resistance will give you the pattern. ARIA’s rectangle pattern has formed a $6.50 resistance (red) and a $5 support (green). At some point the stock will have to break one way or the other.

ARIA is trading within a rectangle pattern. The possible long positions on the stock would be either on a pullback to $5, or on a breakout above $6.50. Short opportunities would be on a rally up to $6.50, or on a break below $5.RMD has a 52-week resistance at $53.50. The possible long position for the stock would be on a breakout above $53.50.
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