I found it amazing how many charts you can review during the time outs of March Madness games. To narrow it down, let's discuss a stock that has generated a long-term overbought condition again.
Amgen (AMGN) last generated a long-term overbought condition on the Dec. 9 close of $169.39
The shares then fell 13% to the Feb. 4 low of $147.42.
Recently, AMGN shares have gapped higher three of the past five days and a pullback would be bullish.
As for support, using the Feb. 4 low at $147.42 and the March 20 high at $172.36, here are our pullback levels.
The .236 retracement level is at $166.47 and holding this level would be quite bullish.
With a close below that, look for the .382 retracement level at $162.83 to be tested.
A close below $162.83 leaves us with support at our bounce zone at $159.89-$156.94 (50% - 0.618 retracement levels).
There is further support at the AMGN 50-day moving average at $156.75.
I will follow up when key support is tested.