Replies to post #425633 on Amarin Corp Plc (AMRN)

[FlyFishingStocks]

Snd101,

based on the technicals, is there a price point which if the share prices crossed, would mean the stock shattered through the ceiling, ditching the falling channel and making its way to the rising channel. If so what is that price point? Would you yourself buy at that price point?

Great question. Yes... here is my best case scenario intention:

This is a line graph drawn on the close of each 4 hour period(half day).

Obviously major and minor levels of support have been breached and are now serving as overhead resistance to higher prices.
Those levels consist of highest volume by price, price support, moving average support, trendline support and pattern support.

I have numbered these on the chart:
1- Price support resistance (.78)
2- short term Descending Triangle trendline resistance (.80)
3- pattern breakdown resistance (.8250)
4- intermediate term down trendline resistance (.88)
5- higher volume by price resistance (.92)
6- iceline price resistance(1.09)
7- Long term down trendline resistance(1.19)
8- highest volume by price resistance (1.33)

I will be a buyer if and when prices close above .8250, indicating a broken Descending Triangle pattern. My stoploss will be below the previous level of support #2 or .79). I will add shares incrementally on a breakout above each level until I have a full position after a clean break above level 8. My SL will follow price, and be placed 1 level of support below.
As you can see, I'm cautious/risk averse (with a tight SL) at the yellow highlighted areas. Less so in the light green and green areas above as more protective levels of support become layered beneath my trade.

I use an auto trading program that will react to what ever presents, so that I don't have to interfere emotionally.

What I don't like on this chart is the symmetrical triangle breakdown that has confirmed a steeper down trendline. It's going to take a lot of buying/covering to successfully slice up through these levels noted. If it does, it should shed most of the short position and lead to an easy upward rally.

Best,

FFS