All eyes on ARIAD this time around?

Remember Ariad Pharmaceuticals,Inc (Biotech Ticker: ARIA)run up started back in June 22 til late July, that's almost doubled in price from 1.58 to 2.8 in speculated news of the Rida Phase III interim data results to report in 2Q, well, it never happened. Ariad didn't report any result data. Well, we are at it again in 3Q speculating that Ariad is going to report the data result, let's take a closer look, if this time around is on purely speculative or something is brewing for major break out?

1. Recent News of the US appeal court reconsider the patent dispute,which in favor of Ariad, if awarded, $65 million plus royalties and back royalties of the billion dollar drug;Evista.
2. With "outperform" rating by Oppenheimer and price target of $4.00.
3. CEO bought 1.7million shares on 08/04/2009 at an average price of $1.9.
4. Positive data results on Phase II on their flagship drug,Rida treatment of sarcoma, and most analysts speculate that these data will carry over to Interim Phase III, which will be announced in 3Q if not sooner.
5. Partnership with Merck not only for Sarcoma, but in other Phase II of multi-cancer treatment settings.

On the flip side there has been an increasing number of short sellers on recent months and on key dates, Sept 9,Sept 30th. However, with trading volume increasing steadily in recent months, July 60 million, August 69 million, and in recent week moved and closed above barrier point of 1.80 on August 13, recently moving pass 2.05 and above 10,30 and 50 days moving averages and closed at 2.12 on August 21 2009.

So is this stock on the verge of major breakout? All speculative news are out, factual news are in and technical trends pointing in an uptrend direction. It will be a huge surprise not to see this stock break out in a few weeks, but in what direction? One can only speculate but it's well worth to keep your eye out for this one.