Should you take this $CALL?

I took this $CALL because it broke out of the consolidation range last Friday.  I bought a starter position after it took out the opening range and then added after it was able to maintain above the opening range.

Take a look at the daily chart below:

While Friday was an up day for $CALL, the pause here would be that the price action was hitting against the 79SMA and 89XMA at Friday close.  Noticed that both the 79 and 89 were lumped together on this resistance.  If price action could take out this double MAs resistance, price could rally hard since this one got a high short interest per Yahoo Finance:

Shares Short (as of Sep 30, 2013)3:	4.18M
Short Ratio (as of Sep 30, 2013)3:	22.20
Short % of Float (as of Sep 30, 2013)3:	26.60%

Below is the weekly chart:

Did you see how the weekly price is bouncing off the long-term support line?  Currently, even the weekly chart has a 15 SMA resistance against current price.  So, there exist a possible failure in the rally due to the weekly and daily resistances.  On the other hand, a breakout of these two time-frames resistance could mean a continued rally.

Fundamentally speaking, I use MagicJack myself so I know the benefit directly. I used to have Verizon land-line and the monthly charge to me was an average of $30+ per month.  Now,I pay less than $50 per year!  On top of that, I’ve the benefit of using the land-line number on my Android mobile phone by installing the MagicJack APP so that I can take or make call on my mobile phone on the go.

The convenience and the saving of of having MagicJack is fantastic to me; so I have to assume it applies to whomever use the service as well.  I can see there are other competition to MagicJack but I only know what I’m using.

Anyway, MagicJack expansion to oversees may be the next catalyst for the price rally.

In summary, it depends on how price action behave the coming week against the weekly and daily MAs resistances; if it break out higher, I may add more; and if it fails, I will probably bail out for small losses or small gain.

My 2 cents

 

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Folks, we are heading into Oct 16th FDA advisory committee meeting.  Place your chips either at the center of the table or put it back into your pocket.  As for myself, I moved a sizable amount into the center.

Well, what cards do I have that I’m willing to risk such amount on this $AMRN bet?  you may wonder.

Here are my cards:

I’ve been taking Vascepa everyday (4 grams a day) since March.  Although I was fearful of the large size of the capsule in the beginning, now I’m looking forward to taking them at meal time.  Believe me when I said it is actually my body that looks forward to taking Vascepa.  Despite its large size, I swallowed the pill as if it was nothing.  It went down my throat smoothly with no reflex of gagging as some might have feared.  I can see that $AMRN is using the best quality capsule to contain the EPA ingredient inside which make it so much easier to swallow.  I had swallowed over-the-counter (OTC) fish oil capsules before and I can tell you the quality of the capsule used by Vascepa is far superior.

Why would my body looked forward to taking the capsules?  I believe because the EPA ingredient in Vascepa is doing something good inside my body.  So far, I’ve no side-effect whatsoever from the months of taking Vascepa.  My latest blood test from my doctor has reflected significant improvement on my trig level.  And I’m feeling fine where my heart is concerned.

Is it psychological that I’m looking forward to taking Vascepa or is it really my body who craves it?  Does it really matter?  When you think about this, you know I will always get my refill.  Imagine all the other people who is taking Vascepa or is going to be taking Vascepa feel the same way that I’m feeling.  Go figure.

Next, why will FDA Advisory committee meeting have anything against a specialized fish-oil with high concentration of EPA that can provide the benefits that over-the-counter fish oil cannot?  Think about this, by taking a favorite stance on Vascepa on the Anchor indication, FDA may be encouraging people to stay away from the OTC fish oils with questionable purity and go for the healthier fish-oil that have been proven in Phase 3 trials with multitude of benefits.

Have you been to Costco lately?  If you wander into the aisle where the Omega-3 fish oils are stocked, you will be surprised how many different brands of Omega-3 are available.  In other words, there are huge demand for Omega-3 fish oil.   Offer these people a prescription grade Omega-3 fish oil with proven benefits and how many do you think will jump over from OTC brands?

There you have it, my fundamental reason for believing $AMRN’s Vascepa will get a nod from the FDA Advisory committee.  If it is good for the population, why withhold it?  It is my opinion that there is simply no risk for the FDA Advisory committee to clear the road for Vascepa.

Now, take a look at the daily chart:

Currently, from the daily chart, price action has cleared all the MAs (5, 15, 79, and 89).  Price action has obviously taken a positive turn and is on the way to take out the recent high at $7.40.

Now, take a look at the weekly chart:

As you can see, the downtrend line has been broken. Price action has taken out the 5 and 15 SMA lines.  There are two overhead resistances from the 79SMA and 89XMA.  With any good news from the FDA, these two resistances will be taken out quite effectively.

Now, stand back and look at both of the charts again, the daily and the weekly.  Did you see the cup and handle pattern being developed?  Does it look like a break out is about to take place?

Am I crazy to bet big on $AMRN?  Maybe I am; but what is the point of not betting big when I “personally” perceive a statistically advantage here?  After all, isn’t why we “speculate” in the stock market?  Searching for a stock with a probability of making a run to the upside?  To me, it is a calculated risk I’m willing to take.

But don’t forget, I’ve been wrong and have taken big losses before; on the other hands, I’ve also made a few successful bets as well.

My 2 cents.

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