Another under-$10 stock that looks poised for higher prices is biotechnology and drug maker is
. This is a clinical-stage biopharmaceutical company focused on developing improved treatments for cardiovascular disease. This stock has dropped around 12.4% so far in 2011.
If you take a look at the chart for Amarin, you'll notice that this stock has been downtrending big for the last couple of months, with shares consistently making lower highs and lower lows. Whenever any stock shows a price pattern like of lower highs and lows, it's always considered bearish behavior. Shares of Amarin were trading as high as $15.02 in July but have since then dropped to a recent low of $6.43. Since hitting that low, the stock has started to rebound and is now approaching a breakout trade if it can manage to move above some past overhead resistance levels.
Trades should now watch for a sustained move and close on high-volume above some overhead resistance at $7.34 a share. A high-volume move and close above that level should set this stock up for a big bounce back towards its 50-day moving average of $8.77, or possibly much higher towards its 200-day moving average of $11.45.
One could now be a buyer of this stock off any noticeable weakness with a stop just below some near-term support at $6.43. You could also be a buyer off of strength and get long once $7.34 is taken out with volume. Look for volume that's tracking in close to or above its three-month average action of 2.49 million shares.
Amarin shows up on a recent list of
10 Biotech Stocks Loved and Hated by the Pros