NASDAQ:ARLZShort down wedge and closed below 200 MA. Any downside is limited to a nickel. Friday numbers may provide more fuel to the fire. Expecting consolidation until earnings November 7, at that point the stock will break the $3 mark.
As previously published the cup action took us today to $2.98. The stock should begin a consolidation phase until earnings, or earlier as some announcement regarding debt restructuring/M&A is being expected for some time and could come any day now.
In mid-March the company announced restructuring of its sales force, reduction in operating expenses and changes in drug pricing. The stock plunged over 40% in 2 days and continued more than 6 months bear raid on the company. However, over that time the company is demonstrating consistent and impressive up trend in sales across the board of all its drug products....
ARLZ is forming a nice fallen angel pattern with long divergence in moneyflow. It also has good insider buying.
We think it has good upside potential.
* Trade Criteria *
Date First Found- July 13, 2017
Pattern/Why- Fallen angel formation
Entry Target Criteria- Break of $1.50
Exit Target Criteria- $2.43
Stop Loss Criteria- $1.23
Please check back for Trade...
1 hour chart shows a couple of divergent factors.
If you look at the pullback from the big move yesterday, it sits nicely at a 0.5 Fib retracement. We also have the price bouncing from the yellow support line and RSI oversold. I anticipate the stock to climb tomorrow.