AMRN finds buyers around 4.10 for the third day in a row
Amarin Corporation plc (AMRN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
AMRN finished Wednesday at 4.18 flat, slightly outperforming the S&P 500 (-0.46%). Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AMRN as at Sep 16, 2020):
Wednesday's trading range has been $0.16 (3.9%), that's below the last trading month's daily average range of $0.44. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for AMRN. Prices continued to consolidate within a tight trading range between 3.95 and 4.41 where it has been caught now for the whole last trading week.
One bullish candlestick pattern matches today's price action, the Bullish Hikkake Pattern.
Prices are trading close to the key technical support level at 4.00 (S1). The stock found buyers again today around 4.10 for the third trading day in a row after having found demand at 4.14 in the prior session and at 4.09 two days ago. The last time this happened on September 10th, AMRN actually lost -2.39% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 4.40 where further buy stops might get triggered. Selling could accelerate should prices move below the close-by swing low at 3.95 where further sell stops might get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Though it is usually interpreted as bullish, it has actually shown to be bearish for Amarin. Out of 126 times, AMRN closed lower 48.41% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 60.32% with an average market move of -1.81%.