ARNA And PCLN

From September 11, on ARNA:

"The 5.64 and 5.61 highs set up a flat top for a morph into an Ascending Triangle. If ARNA pulls back here, then breaks out above 5.64 - 5.61, that would look fine."

ARNA not only pulled back after the first two targets got MADE, it came within about four cents of validating the ascending line for a second time, and the Symmetrical Triangle (dotted black line), indeed, has morphed into an Ascending Triangle. At 4:01PM yesterday afternoon, there was this news item announcing that ARNA would have a conference call at 8:00AM this morning. There wasn't any indication that I saw regarding whether the news was good or bad, but the stock was flying in after-hours, above $6.00. At midnight, there was this release:

Arena Pharmaceuticals Reports Positive, Highly Significant BLOSSOM Trial Results for Weight Management; NDA Submission on Track for December
Arena Pharmaceuticals Inc
ARNA | 9/18/2009 12:00:00 AM

--- Lorcaserin Meets all Primary Endpoints and FDA Benchmark ---- 63% of Lorcaserin Patients Who Complied with the Protocol Lost at Least 5% of Their Weight ---- Lorcaserin Patients in the Top Quartile Achieved Average Weight Loss of 16% or 35 Pounds ---- Combined Phase 3 BLOOM and BLOSSOM Data Set Confirms Lorcaserin's Excellent Safety and Tolerability Profile and Rules Out Heart Valve Effect ---- Conference Call and Webcast Presentation Scheduled for 8:00 a.m. ET on September 18, 2009 -

SAN DIEGO, Sept 18, 2009 /PRNewswire-FirstCall via COMTEX News Network/ -- Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) reported today positive, highly significant top-line results from the BLOSSOM (Behavioral modification and LOrcaserin Second Study for Obesity Management) trial. BLOSSOM confirms the results previously reported for the BLOOM (Behavioral modification and Lorcaserin for Overweight and Obesity Management) trial and completes the lorcaserin Phase 3 pivotal registration program of 7,190 patients evaluated for up to two years. Arena plans to submit a New Drug Application, or NDA, for lorcaserin to the US Food and Drug Administration, or FDA, in December."

Possible Breakaway Gap in ARNA at the open.

Okay, okay, Kevin, I owe you a couple, so I downloaded the chart and did the analysis. LOL.

PCLN has been in a powerful Bull Market since its October, 2008 low, up about 275%. Of note, there were a number of bullish breakouts prior to the 50/200 Bullish Cross, and we have another example here of a H&S Top that got taken out to the upside, so the points for the measured move get added to the high of the head.

Your Bear Wolfe Wave possibility looks very decent. The volume is markedly low in this move higher, so that's suspicious. Yesterday's close was just eleven cents above the pattern. Add 0.462 per day to 165.89, which is where the trendline came in yesterday. Good luck if you play it!