Penny Stock Pick - ARWR

Shares of Arrowhead Research Corp. (ARWR) were up 5 cents or 5.62% to 94 cents per share after the company announced it increased its ownership of subsidiary Calando Pharmaceuticals.  The stock has been on a down trend since it reached 52 weeks high of $1.85 in early June.  However it seems the stock maybe reversing to a uptrend as the most recent support at 89 cents per share is higher than the previous support level of 85 cents per share which show an uptrend.  Other technical indicator such as MACD and KD still show weakness as MACD is below 0 and KD is pointing downwards.  The financial also show weakness as the company is still losing money and has been selling stocks to maintain a strong cash position.  One positive sign comes from insider transaction as company officers bought total of 35,000 shares in late August.  Generally when insiders buy shares, especially in large amount it is a sign that positive things are coming.  If the stock can keep going up and break the resistance at $1.03 this could further confirm the uptrend.  However do be cautious as the stock has touched the 20 day moving average and may encounter some selling pressure.  If the stock can overcome 95  cents 20 day MA, the next would be the 200 day MA which is only couple of cents above.