Replies to post #420540 on Amarin Corp Plc (AMRN)

[FlyFishingStocks]

This chart says otherwise.

It is now oversold, the momo guys have taken their profits, and this is ready to climb all by itself (well not by itself but without necessarily the need for Denner's gang to get involved). So hoping that by Tuesday night we are well above the 1 buck mark.

Respectfully, that is incorrect from a TA standpoint. The stock is not oversold - far from it.
The most popular indicator to measure overbought / oversold conditions is the RSI. You can see in the chart below that it remains above the 50 level.


For it to be oversold, it would have to plummet further below 20-30 as it did prior to the bullish development of the inverse head and shoulders pattern that I alerted of (post #418183 "A Technical Win for the Bulls!... led to a +98% rally).

Then, as opposed to now, the RSI broke above the indicator trendline(bullish green shaded area). Now at the right edge however, we are seeing a mirror image of that. Friday's failure below support sent this important indicator below its up trendlne - indicating bears are in control of the immediate price direction (down).

Don't underestimate Friday's daily bearish bar which slipped below a key level of support on a day when there was a broad market rally that shot the S&P500 to an all time high. This type of performance divergence on an option expiration day is telling.

Also, a question for the board. Can you cite one instance when management has supported their stock price when it was falling in the past? You can't because it hasn't happened. Rather, bears smell blood and slam it down way past oversold conditions often to new lows.

Another question. Why wouldn't Denner orchestrate conditions conducive to delisting? This sheds weak hands and big shareholders... and sets the company up for a hostile takeover - which would easily pass a shareholder vote given the scenario that the stock suddenly becomes hard to rally, hard to follow and most of all... hard to exit (no buyers).

While you all have been endlessly hopeful of a recovery, TA has been whispering something is drastically wrong. While many of you aren't willing to embrace that message, the bears are... and they have successfully manifested the probable outcome of this ongoing TA message.

Finally, consider this. Naked shorting by a few synchronized hedge funds is nearly impossible to overcome over a 3 day period. It sucks if you're long, but there are loop holes that keep them in the gray area of legality. This type of nefarious activity is amplified in microcaps like AMRN - as we've all witnessed.
If the bears have the upper hand, they control supply and can engulf/strangle any blast of demand with that supply. This equates to lower prices until something changes TA wise or fundamentally.
Also, if in fact (heaven forbid) the stock is delisted, you must take into account that each time the biotech index rallies, you will no longer see wind in the sales of an AMRN rally because funds will no longer be purchasing the stock. As a result, the price behavior changes drastically. AMRN will lose that natural support of the broad market.