Still a gap between 18.13 and 19.39 that needs filling but I can't see any immediate rush to fill it. Lots of cheap shares still to be had at lower prices before it reaches the 20's again IMO.
The November end of month close at $18 tells me that there must have been big selling going on in October. The pros sell when the price is rising and the retail traders are busy fantasizing about fancy automobiles and yachts. During October we reached a high of 23.10 with an end of month closing price of 20.83.
As a bull, I wanted to see a closing price of 20.83 or greater end of November. This would have told me that the October selling had been absorbed, and the share price would now continue to rise. But it didn't. It closed at 18 on the button, well off 20.83.
Based on what i've observed in my TA over the years, this kind of price action is very bearish 9 times out of 10, and I would be looking to sell all my shares this month. But strangely, there was also huge volume on the November price bar. It went as low as 13.56 but recovered to close at 18 which tells me that there must have been big buying during November from the professionals. The pros buy when the share price is dropping like a stone and retail traders are panicked with knots in their stomach worrying.
The pros would obviously only be buying if they considered the share price to be now very good value at $13-18 which is where most of the buying has been happening as far as I can tell. They obviously must be expecting much higher prices. To confirm that this was indeed buying rather than continued selling, you now want to see the share price close at $18 or above end of December. If it does then that's a very bullish indicator going into 2019 based on the TA methods that I use. My thinking is that the pros knew that dilution was in the works with only $82M cash on the balance sheets, so prices were stalled in the low $20's because they knew they could slam the prices down after the dilution announcement and pick up more cheap shares.
The S&P500 still has a gap to fill below between 263.25 and 265.34, and share prices tend to move in sync with the parent indexes so I expect that gap to be filled and Amarin's share price to drift down towards the $16's again along with the S&P, as the pros continue to accumulate more cheap shares. Why buy in the $20's when you can buy in the mid-teens? It wouldn't surprise me to see prices in the $15's or even $14's within the next couple of weeks.
JMO based on my own TA. I'm long the stock.
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