Amarin Corp Plc (AMRN)

[FlyFishingStocks]

what do you see happening next?

i see it taking 2 steps down/ 1 up until demand materializes. The rally we recently saw was primarily short covering in response to the oversold price pattern combined with news. The trend (long, medium and short term) is down.

These are the pertinent questions I ask to assess the TA of a stock:
How did it get here?
- Inverted head and shoulders pattern induced a short squeeze – further amplified by the recent PR.
- Stock accumulation? Or Short covering. Primarily the latter based on the failed sustainment as prices encountered overhead resistance

What was the reaction to falling resistance?
- Prices stabbed up through the down trendline and were promptly rejected. Lack of followthrough is net bearish as false breakouts become very attractive
shorting opportunities.

Is this a repeatable pattern with similar price action?
Yes. This time last year, as well as multiple times before when the down TL was tested, leading to retracement that eventually led to new lows.

Conclusion:

In spite of good news, the technical conditions do not support sustainment of the +98%) bear market rally we recently witnessed.
If prices breach the ice line, bears will regain complete control of price direction.

Watch for a bounce off the 50% retracement line at .98. If that fails, it will likely slip down to test the 50MA near .85.