Amgen looks set for upside breakout
Amgen (AMGN) has been in a long term uptrend but the stock has been on hold for a year. My favorite indicators look more positive, so let’s take a look at the charts to see if it’s time to buy.
In this daily bar chart from AMGN, below, we can see that prices have traded sideways between $ 215 and $ 260 for months. Trading has not been smooth so I suspect it has not been easy to make money with the up and down swings over the past 12 months. AMGN is now above the rising 50-day moving average line and above the rising 200-day moving average.
The On-Balance-Volume (OBV) line has cut sideways for months, but has been very strong since early March and looks close to a breakout to the upside.
The Moving Average Convergence Divergence Oscillator (MACD) moved sideways around the zero line last year. No help from this indicator.
In this AMGN weekly Japanese candlestick chart, below, we can see a large ascending or bullish triangle formation. Prices are in a longer term uptrend above the 40 week rising moving average line. We see higher lows from March 2020, but roughly equal highs around $ 260 on the chart. A weekly close above $ 260 would be the breakout.
The weekly OBV line is stable and the MACD oscillator is turning upwards for a new outright buy signal.
In this first AMGN daily point and figure chart, below, we’ve used a percentage movement for the scaling. Here we can see that a trade at $ 260.88 could be the tipping point for a breakout. A target price of $ 328 is shown.
In this second AMGN daily dot and figure chart, below, we used the same price data, but with traditional dollar scaling. Here, a higher price target of $ 379 is shown.
Basic strategy: AMGN looks like it’s ready to make its move higher. I have no idea if there is any expected or unexpected news, but the chart is ready. Traders could stay long at current levels risking to drop below $ 240 for now. Add to longs above $ 261. $ 328 is our first price target.
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