If you're looking for a biotech player that looks poised to breakout, then put Amarin (AMRN - Get Report) on your trading radar. This company is a clinical-stage biopharmaceutical player focused on developing improved treatments for cardiovascular disease. Amarin's development programs capitalize in the field of lipid science and the therapeutic benefits of essential fatty acids in cardiovascular disease. This stock is off to a fantastic start so far in 2011, with shares up over 76%.
If you take a look at the chart for Amarin, you'll see that this stock has been trading inside of a channel chart pattern for the past two months. During that time, the stock has been trading between the upper-end at around $15 a share and the lower-end at around $13.30 a share. Traders should now watch for a breakout above the upper-end if they're bullish on AMRN.
A move above $15.02 a share and then above its 50-day moving average of $15.74 a share could trigger a big bullish run for AMRN. I would suggest watching for a breakout that comes on big volume above these levels. Look for volume that's close to or well above its three-month average action of 2.9 million shares. This stock has a ton of upside if the breakout does hit because this name was just trading at $19.87 back in early June.One could simply be a buyer of this stock right now and anticipate the breakout above $15.02 a share. I would add to any long position aggressively if you see AMRN trade above $15.74 on big volume. The only way I would get short this stock is if you see it trade below $13.30 on heavy volume, since that level has already triggered a double bottom support zone.