Amarin Corp Plc (AMRN)

[Options2Wealth]

Reading AMRN's Stock Charts for the coming week:

I don't claim to know the markets well enough to make arbitrary price predictions on any stock...my predictions are based solely on my read of the stock's candlestick and point and figure charts, which in my 30+ years of experience has served me well... I have found that making investment and trading decisions based on stock charts to be very helpful. Does not mean that my decisions are always right... but over the years, my read of a stock's charts has often helped me avoid making wrong decisions. I believe that reading stock charts is akin to doctors taking electrocardiograms of patients to determine their cardiac health... or lack thereof.

Every stock's daily and hourly trading activity leaves telltale imprints that can be read through charts to determine its immediate health. We all know AMRN stock's longterm health is rock solid...and after Friday's trading activity, it's stock charts paint a picture of very robust health short-term as well (5-10 days)...

Bullish Signs:

1) After the previous trading day's strong 9.5% rise, the stock opened down, tested support, and then made a new weekly high ($19.46) and ended Friday's half day session up 1.2%.

2) The stock stayed strong on a day when most US indices closed in the red.


Now let's read the charts...candlestick first:



In the above chart showing 10 days of trading activity at 60 minute intervals, you can see the stock bumping its head on its resistance line which coincidentally sits just around Friday's intraday high of $19.46!


PnF chart:



As we can see, both the candlestick chart and the PnF chart of AMRN are marching in lockstep and both are clearly highlighting the same breakout point: $19.50 However, the PnF is showing support at $16.50 and the 10 day hourly candlestick is showing support at $18. Of course there is a good reason for this deviation, but it is not important for this current exercise.

Prediction:

Based strictly on my reading of AMRN's charts, I am quite confident that the stock should be able to break through the overhead resistance and print $19.50 as soon as Monday at which point the coast is relatively clear for the stock to reclaim its recent high of $23 and change which of course is the next resistance... Once AMRN prints $24, there is no overhead resistance and the ride to $30 should be pretty quick...There are a number of catalysts that should help, including the Evercore presentation on Tuesday and the weekly scripts numbers, though I won't be surprised if next Friday's numbers show negative or lackluster growth due to an abbreviated week (Thanksgiving holiday).

Barring a total market collapse, I don't expect AMRN stock to see $14 again... and I am quite confident that AMRN stock will hit $30 within 6 weeks even sans news of a European partnership...

But first, let's see how next week pans out... :)

o2w