Amarin Is a Buy Again, This Time for the Long Haul (AMRN)

Back on September 6th when I suggested Amarin Corporation plc (NASDAQ:AMRN) was anything but a "buy" following the 14% runup it had made over the course of the two prior days, I caught more than a little flack for it. After all, AMRN was finally running like crazy after getting cut in half during the last half of 2012 and the first half of 2013. This was the move that was going to undo all that damage.

Four days later, AMRN had fallen from that peak of $7.40 to a low of $6.31.

It was that same day, September 12th, I was called a few choice names for deeming Amarin Corporation plc a "buy" at the $6.70-ish level - how ridiculous of me to suggest anyone step into a stock that was clearly tanking. Three weeks later, AMRN hit a high of $7.00, though to the naysayers' credit, shared did reach a low of $6.05 a week and a half after my bullish call. In the meantime, the stock's rallied all the way up to today's high of $7.23, and seems to be getting comfortable at $7.11, up about 6% from the September 12th call, and up similarly since September 3rd when I first warned the stock was on the verge of a breakout.

I'm not reprising my look to pat myself on my back, however. I'm bringing it up again today to point out that AMRN has take a huge bullish step that could prove catalytic... catalytic to a move that would make the gains seen over the last month or so look like chump-change.

The key to that catalyst is the fact that Amarin Corporation plc shares have worked their way above the 200-day moving average line (green). That was the impasse back on the 6th, but the bulls carried shares past that hurdle today. With it out of the way, there's nothing else left to hold AMRN back.

To fully appreciate the kind of sea-change this is, however, one has to take a step back and look at a weekly chart. Amarin has broken above not one but two falling resistance lines, and hasn't looked back.

The clincher is the way the volume behind the current leg of the recovery rally over the past four days (including today) has been noticeable stronger than the volume we broadly saw on the way down over the last two-thirds of September. To see stronger volume flowing in at the same time we're seeing key resistance lines knocked over bodes very well for the stock's future. Time to wade in, only this time, you'll want to stay in.

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