Arthritic Amgen Taking Enbrel For a Move to 85
- Posted by Greg Harmon
- on March 29th, 2012
With the rotation into healthcare and pharmaceutical stocks Thursday and heading into the end of the first quarter a quick look at the monthly charts in the sector reveals a gem to watch. Amgen, $AMGN, has a strong set up on the daily, weekly and monthly time frames. Let’s start with the monthly. After breaking the Symmetrical Triangle higher in December, with a target of 85, it is in a bull flag with a break higher yielding a target of 81 on a Measured Move. The Relative Strength Index is bullish and rising, with a MACD that is positive and growing. Now back
Amgen, $AMGN, monthly
in the Bollinger bands it is time to start watching for that breakout. The weekly chart also is building a bull flag. In fact it may be a bit long in the tooth, and ready for a pullback. The RSI is bullish and strong but the MACD has just moved negative. There have been long tails to both the upside and downside in the flag but many more to the upside, a bit bearish. It has the same target on a Measured Move to 81 higher as the monthly chart with support at 64 and 60. Then
Amgen, $AMGN, weekly
moving in closer to the daily chart shows the 2 and a half month flag with a bullish RSI that is trending lower and a MACD that is tightening on the zero line. This time frame shows a target of 72 on a Measured Move higher with support at 64 an then stronger at 58. The key to this stock is moving higher is a break over 69. Wait and watch with your order ready. So give it some Enbrel to get rid of that arthritis and let it move higher. Maybe it should add some Cialis?
Amgen, $AMGN, daily
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Gregory W. Harmon CMT, CFA, has traded in the Securities markets since 1986. He has held senior positions including Head of Global Trading, Head of Product Development, Head of Strategy and Director of Equity. (More)
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