AMRN still your Best Bet - Stock Outlook

I've been in AMRN (Amarin) stock since February and have already made a nice 38% profit. With yesterday's posted Q1 losses, people might think it's time to take profits and run. Before you do that, clear your mind, think and remember. Amarin has got a great omega-3 product called AMR101 that's going to blow away any competitors high triglyceride product. Their studies have proved that it lowers patients high triglyceride levels better than any other products out in the market. I know it's been a bumpy road along the way due to patent issues, but that can't stop this stock, so stick around.

In the past year AMRN has been as low at $6 and has been as high as $19. I can tell you that I made a nice profit in 2011 and I'm looking forward to making an even better profit this year. I like to use stock price history to determine a great entry point in a stock. That's exactly what I did to get in and out AMRN each and every time. While studying a companies stock chart, I like to focus on stochastics, MACD, bollinger bands, RSI, trend lines and candle sticks. See chart below.

Screen shot of AMRN from http://www.freestockcharts.com

Noticing trend lines in a stock is a really great way to determine future stock prices. As of today, AMRN is following a new trend line, due to its recent rally. At the time of this posting, AMRN has been slowly coming down due to its overbought status, according to the stochastics, MACD and RSI reading in the chart. When trend lines are in place we can expect the stock to come down to the $10.70 level, which would give us a good entry point. When looking at the bollinger bands, we can see that the bubble is expanded and this is not a good sign; we can expect the stock price to drop more. When the top line and bottom line of the bands are more contracted, there is a better chance for AMRN to shoot back up as it did the previous two times. Another good sign that this stock is in an uptrend is that the 50-day and 200-day moving average is below the current stock price.

Within a few days, there's a possibility AMRN will come down even further from the current $11.48 price to around the $10.70 level. Once it hits that level, we can expect a nice rally back up where this stock belongs; around $13 (short term price target). AMRN is also a potential take over target due to its great product, so look out for that. Banks have put a $24 price target on AMRN, so get in while it's still a bargain!

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