Zooming In on Amgen's Charts

 | Jun 27, 2014 | 9:00 AM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:


I'm pretty sure I've shown you the bigger-picture analysis in Amgen (AMGN) on the weekly chart. This is where the path of least resistance on this particular chart would suggest an eventual move to the 1.272 target at the $134.61 area if price continues to hold above the late April 2014 lows. (The actual low was made on April 28, though the weekly charts note that that is the week ending May 2, which is the date illustrated on the weekly chart.) 

I'm not willing to risk below this key low, however, to see if I'm right! So how can you manage the trade if you are in it? Or how can you get involved with well-defined risk if you are not already in this name?

Let's look at the lower-time-frame work for those answers. You can see that we are up against some resistance here on the weekly chart, but the other answers are going to come from the daily charts that I've prepared for you.

A recap of the setup on the weekly chart came from the fact that the last major decline illustrated on the chart lasted six weeks and was $20.80. The decline into the week ending May 2014 low also lasted six weeks and was $20.76, which is a very similar swing in price. This "symmetry" projection also overlapped a .618 retracement of the prior major swing on this same chart. Once we started seeing buy triggers after holding that zone, we knew we could look at the buy side with our risk defined below the late April low.

AMGN Weekly

Let's look at the daily chart next. If the bullish pattern since the April 28 low was made is going to continue to play out sooner rather than later, price should hold above the prior swing low made on June 13 at $115.30. Above this prior swing low I have an important price support cluster that comes in at the $116.52-$117.48 area. This includes a .618 and .786 retracement of the prior minor swing along with two 100% projections of prior corrective declines within the uptrend.

So as of now, I am OK being a buyer of this stock as long as this key price support is not violated. My maximum risk will be defined below the $115.30 swing low. My bigger-picture target in this name remains at the $134.61 area. If the June 13 low is taken out instead, I will back off the buy side until further notice.

AMGN Daily
AMGN, 78-Minute

Columnist Conversations

View Chart »  View in New Window »
this chart is showing great bullish signs here, we like this to take out the old high shortly. ...
Now that AAPL has violated the shorter term support, these are the two areas I have to consider for new buy en...
The symmetry is holding up in MCD.  Target 1 is 163.34 if we continue to hold above here!  ...



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.