Speed Dating Amgen
- Posted by Greg Harmon
- on July 25th, 2013
Large Cap Pharmaceutical names have been hitting earnings out of the park and are being rewarded for it. But they are not all done reporting yet. That leaves an opportunity for one name that is reporting on July 30th after the close. Leading into that report there is an opportunity to profit ahead of the news. Let me explain.
After making a new high in April Amgen, $AMGN, pulled back and consolidated at the 94.50 area. As the calendar turned to July it started higher out of that consolidation until the stall the last few days. That stall, actually a Rising Three Methods pattern, is quite bullish. And with a level of 110 to trade against, it may be possible to extract some or all of a Measured Move higher to 121 before the report. The Relative Strength Index (RSI) is bullish and the Moving Average Convergence Divergence indicator (MACD) is rising. Many would not wait for the trigger over 110, but it will give an added measure of safety to your entry. If you are still holding into the earnings report, a long protective put or a collar can protect your gains. Happy dating!
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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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