Biotech Stocks to Trade for Breakouts: Amarin

DELAFIELD, Wis. (Stockpickr) -- These three biotech stocks are within range of triggering breakout trades.

Amarin
(AMRN) a biopharmaceutical company, focuses on the development and commercialization therapeutic products for the treatment for cardiovascular diseases. This stock closed up 2.7% to $1.88 in Wednesday's trading session.

Wednesday's Range: $1.81-$1.94
52-Week Range: $1.36-$8.77
Thursday's Volume: 4.66 million
Three-Month Average Volume: 6.07 million

From a technical perspective, AMRN jumped modestly higher here back above its 50-day moving average of $1.86 with lighter-than-average volume. This move is starting to push shares of AMRN within range of triggering a big breakout trade. That trade will hit if AMRN manages to take out Wednesday's high of $1.94 to some more near-term overhead resistance at $1.97 with high volume.

Traders should now look for long-biased trades in AMRN as long as it's trending above Wednesday's low of $1.81 or above more near-term support at $1.72 and then once it sustains a move or close above those breakout levels with volume that hits near or above 6.07 million shares. If that breakout materializes soon, then AMRN will set up to re-fill some of its previous gap-down-day zone from January that stared just below $2.50.

To see more stocks that are making notable moves higher, check out the Stocks Under $10 Moving Higher portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

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Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

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