Another under-$10 stock that looks poised for higher prices is biotechnology and drug maker is Amarin (AMRN). 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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV