given all of the volatility, where does yesterday's move and today's early action leave us in regards to AMRN's technical set up?
As expected, AMRN is facing headwinds complements of a general market selloff. However, given its higher ATR, AMRN actually faired better than the biotech index.
Current daily chart:
The stock continues to hold strong support made up by the September and January gaps (purple highlight), and the rising 50day moving average.
Volume was 2xs as much on the upside vs the pullback - reinforcing the longer term uptrend from the November bottom.
Momentum (MACD) continues to pullback from a peak and is poised to reverse above the 0 line.
With continued market weakness, I expect to see a stab below the 50MA that would instantly meet strong demand and develop into a bullish engulfing candle (A). This would set the stage for upside follow-through (B).
