Jim Cramer is quick with an answer when callers ask him about stocks during the Lightning Round segment of his "Mad Money" program. One caller Thursday night asked about the biopharmaceutical company Amarin Corp. (AMRN) . "This is a niche company. It's an interesting risk/reward," Cramer answered.
Let's check out the charts of AMRN again. In our April 15 review we were not fans.
In this updated daily bar chart of AMRN, below, we can see that prices have traded sideways the past 12 months mostly in the $4 to $6 area. A rally to $9 was not sustainable. AMRN is back above the rising 50-day moving average line and testing the underside of the bottoming 200-day moving average line. Strength above $6 will restart the uptrend. The daily On-Balance-Volume (OBV) line shows a low in July and an ever-so-slightly higher low in September, suggesting that we are seeing a shift toward more aggressive buying. The Moving Average Convergence Divergence (MACD) oscillator is sitting on the zero line but poised to cross to the upside for a new buy signal.
In this weekly Japanese candlestick chart of AMRN, below, we can see a potential base pattern playing out in the $4 to $9 area the past two years. The weekly OBV line is trying to bottom and the MACD oscillator has come back to the underside of the zero line.
In this daily Point and Figure chart of AMRN, below, we can see that prices reached a price target of $6.32. A trade at $6.01 should improve the chart.
In this weekly Point and Figure chart of AMRN, below, we used a five-box price reversal filter. A lot of price history is displayed along with a $28.25 price target. A rally to $28, should it be reached, would be a huge upside breakout.
Bottom line strategy: Traders who have a lot of patience could go long AMRN on strength above $6, risking to $3.90 or just below the July low.