Arca Biopharma is a biopharmaceutical company developing genetically targeted therapies for cardiovascular diseases.
52-Week Range: $1.13 - $5.94
Three-Month Average Volume: 669,132
From a technical perspective, ABIO exploded higher above its 50-day moving average of $1.47 with monster upside volume. This move is quickly pushing shares of ABIO within range of triggering a major breakout trade. That trade will hit if ABIO manages to take out some near-term overhead resistance levels at $1.63 to $1.70, and then once it takes out more resistance at $1.76 with high volume.
Time to look for long-biased trades in ABIO as long as it's trending above its 50-day at $1.47. There is also bottom support at $1.30. Once it sustains a move or close above those breakout levels with volume that hits near or above 669,132 shares, then ABIO will set up to re-fill some of its previous gap down zone from May that started near $2.80 a share.
Today's action, although ending 4% lower, showed impressive volume over 2X the average.
I cannot say for certain, but my experience indicates that there may be collusion between the insiders and the market maker to artificially suppress the PPS until sufficient accumulation has taken place. If that is true, then ABIO is going much higher.
That post sure beats a discussion about box turtles. A look at a one week chart shows an almost machine-like daily stepping up of the share price. If that pattern continues unabated, we could see $2.00 per share by next Friday, 11/15/2013. Candlestick charting on 10/22 showed a bullish matching low. Today a bearish stop-loss was triggered. We need to reacquire $1.60 in a hurry or else the short term chart is broken. A close below $1.52 would break the chart and initiate a sell signal. I really hope ABIO can pull through on Monday with a close at or above $1.60.