During Wednesday's "Mad Money" one caller asked Jim Cramer about Amarin Corp. (AMRN) .
"I'm a speculative buyer. They've got a lot going on," said Jim Cramer.
Let's check out the charts and indicators of this pharmaceutical company focused on developing therapeutics to improve cardiovascular health.
In this daily bar chart of AMRN, below, we can see that prices have largely traded sideways the past 12 months. AMRN has crossed above and below the 50-day and 200-day moving average lines a number of times. Matching the price action the On-Balance-Volume (OBV) line has moved sideways and the Moving Average Convergence Divergence (MACD) oscillator has crossed above and below the zero-line several times in the past year.
In this weekly bar chart of AMRN, below, we see two large sideways patterns. One in the $3 area and one around $18 since October 2018. Prices are barely above the flat 40-week moving average line. The weekly OBV line shows a slight increase from August and the MACD oscillator is pointed down in a take-profits sell signal.
In this Point and Figure chart of AMRN, below, we can see a potential downside price projection in the $17-$16 area.
Bottom line strategy: All things considered, AMRN is likely to continue to trade sideways with the risk of a decline to the $17-$16 area. A new blockbuster drug announcement will obviously be a game changer, but that is nothing I can predict.
