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$AMRN Technical Analysis, The support is very close.

|Includes:Amarin Corporation PLC (AMRN)

$AMRN well know to most of the Biotech traders after it's huge GAP & runup on April this year, it's the dream of every trader to wake up one day and your position almost doubled overnight, the top was on May 31st reaching $19.87, but it start trading in a falling mode from that date in a downtrend channel, the price formed a support zone @ $13.30 trading 2 weeks side way, but with the help from the markets troubles and the big sell-off, it breaks down the support line and fall down till it touched the lower channel line and the 200MA to bouncing back from it...we can see that the both lines used as a support in one side and as a resistance in the second side.

The last trading day on Friday, the price break down again the 200MA heading toward the support line @ $9.66, breaking this point will send it toward $8.82, but I believe that this support will hold, as we can see a positive divergence on the RSI14, and the last candle touch the lower line of the Bollinger Bands that "mostly" the price bounce back from it.
Monday is an important day for the direction, if the price keep the downtrend, we might see it touching again the downtrend channel line, in the other side the $9.66 point supposed to use as a support.
I opened a small position @ $10.10 looking for a bounce back, but if the markets keep it's downtrend, I will cut losses with a stop loss, a few points below the support line, it's a well know way of a technical traders, to start a partial position in a stock that you like to own, close to a support line, it's easy as you have a predefined stop loss, close to your buying point, and if the trend goes in your favor, you can add more in the uptrend, after the next technical correction.

Disclosure:Long AMRN

Stocks: AMRN