Amarin Corp Plc (AMRN)

[FlyFishingStocks]

Me33 quote, "The last time RSI was that high the stock pulled from $3.30 to $2 and finally bottomed at $1.27."
Yes, but did you also notice that it rallied for 5 weeks first, while being extremely overbought( based on the RSI)?

Now, it is on a full sprint to close the the October 2013 gap. Shorts are being squeezed, Institutions are gobbling up scarce supply, and we are enjoying the after glow of a catalyst laced earnings announcement. Oh,... and lest I forget, we are 3-6 weeks away from the interim announcement.

All combined, I'm not worried about an RSI at 90. As Marzan said, it is representative of strength and can stay that way for many weeks - certainly enough to take us up to the big news as Couldbe posted. I too think we see the pattern price objective of 4.50 met before any reasonable slump. The type of price action we are seeing forces climax buying as those waiting, waiting, waiting for a pullback never get it, eventually causing them to capitulate and buy/chase it.


Here is how I percieve the RSI similarities/differences (yellow and green highlights):