Investors Can Soon Take Amgen in Larger Doses
The pharma giant has more strength in its uptrend and is poised to make new highs, so here's how to play it.
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In my May 3 update on Amgen AMGN, I wrote that "The question that needs an answer is where do I recommend purchase of AMGN. I am not sure of a level but investors could probe the long side of AMGN after a few days of sideways price action. Maybe we'll see support in the $305 area as some traders take profits."
Traders got a pullback in price to buy and now prices are ready for an upside breakout.
Let's check the charts.
In this daily bar chart of AMGN, below, I can see that prices have hit resistance in the $320-$330 area a number of times since early February. Prices trade above the rising 50-day moving average line and above the rising 200-day moving average line. Trading volume has been more active since February. The On-Balance-Volume (OBV) line shows some tentative improvement since a low in March. The Moving Average Convergence Divergence (MACD) oscillator is above the zero-line and crossing to the upside for a fresh outright buy signal.
In this weekly Japanese candlestick chart of AMGN, below, I can see a positive picture. Prices are in a longer-term uptrend and trade above the rising 40-week moving average line. The weekly OBV line has a positive trend and the MACD oscillator is above the zero-line.
In this daily Point and Figure chart of AMGN, below, I can see a price target in the $435 area. A trade at $327.97 will refresh the uptrend.
In this weekly Point and Figure chart of AMGN, below, I can see the same $435 price target as shown in the daily chart above.
Bottom line strategy: Traders should continue to hold long positions in AMGN. Add to longs on strength above $328. The round number of $400 area is my first price target for now.
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