Amarin Corp Plc (AMRN)

[FishyFingers]

Some more TA analysis for all you fortunate beings.....

Back on Monday the 9th of May I posted this before the market opened:

"This is my analysis for the coming days and weeks ahead so lets see how I do because its time to stick the neck out a bit."

"The bad news is that the share price will continue to fall this week along with the IBB."

"It has been falling towards that lower ascending trend line (major support) for the past 2 weeks and it will continue to drop down towards the 244 level this week. The volume has been decreasing as we approach the trend line and the spreads down have been quite narrow so I see no way in hell that we break below it."

"Amarin's weakness the past week with all the proclamations about how the sky is falling amount to nothing but hot air and noise. The fact is that Amarin is tracking the IBB down and will continue to do so until volume comes in to prop it back up. The selling volume in Amarin was pitiful and anyone fantasizing about this heading down under a $1 anytime soon hasnt a clue about how TA really works. It isnt gona happen, no way in hell."

"Watch Amarin fall with the IBB to the lower trend line now and then bounce off it big time."

And when called out by FFS after challenging his "the sky is falling" theory and his predictions of 69c I posted the following:

"Amarin is in a "do or die" scenario? Meh. I dont see it and its not because im not being objective. Warning signs? I know about them yes. Your definition of what they are clearly differs from mine."

"I see minor temporary weakness and a stock that is under professional accumulation with Amarin. It will track down with the IBB until that rebounds and then so will Amarin."

"Why might the IBB have "a bit of a bounce around 249-250 before resuming back up again"? Because that is where I see support and it is where I predict big buying volume will come in.

So 3 weeks later what happened?

The IBB dropped to a low of 248.90 before big buying volume came in and back up it went exactly as predicted. See it with your very own eyes folks:



Did Amarin collapse to 69c? Eh, no. Instead it did exactly what I said it would do: "It will track down with the IBB until that rebounds and then so will Amarin."



1. High volume came in. The following green up bar the next day told you that the spike in volume on the red down bar was because of buying not selling. So you wait for confirmation to enter the trade on a low volume test which is exactly what you got on bar 2. The price was marked back down to $1.50 but the low volume on this bar confirmed that there was no interest in lower prices. This was the sign to load up and expect higher prices immediately.

And back up it went but once it hit the 200MA resistance (bar 3) prices dropped off immediately closing well below the 200MA on higher than average volume. Last weeks up move was accompanied by progressively lower volume. Both of these signals are bearish so I dont expect prices to go much higher in the near future.

This week I expect a tentative up-move to the $1.90's but then prices will fall back as we enter stage 13 and 14 of this chart:



Take it or leave it.