During "Mad Money" Monday night on the Lightning Round, a caller asked about Amgen Inc. (AMGN) .
"This is a much better company than it was just six months ago," said Jim Cramer.
Let's check out the charts of AMGN.
In this daily bar chart of AMGN, below, we can see a wide base pattern from last December to the end of October. Since the end of October prices have broken out to the upside. A pullback to the rising 200-day moving average line in early October was in hindsight a buying opportunity.
Prices are above the rising 50-day moving average line and perhaps extended above the rising 200-day line. A bullish golden cross can be seen in August when prices were still in the base formation. The On-Balance-Volume (OBV) line has been leading the way higher since May and confirms the price strength with its signs of aggressive buying. The Moving Average Convergence Divergence (MACD) oscillator moved above the zero-line in early October for an outright go long signal.
In this weekly bar chart of AMGN, below, we can see that prices have broken out on the upside from an approximate two-year consolidation pattern. Prices are above the rising 40-week moving average line. The weekly OBV line has been strong since early 2018 and suggests a long period of accumulation. The weekly MACD oscillator gave a buy signal in August.
In this first Point and Figure chart of AMGN, below, we can see a $254 price target being projected.
In this second Point and Figure chart of AMGN, below, we used weekly data and here the chart suggests a longer-term price target of $270.
Bottom line strategy: Traders can go long AMGN at current levels if they can risk a close below $220 for now; $254 and then $270 are our upside price targets.
