Welcome to Extreme Investor Network, where we provide you with unique insights and valuable information to help you make the most of your investing journey. Today, we’re taking a closer look at Amgen, a stock that has been experiencing a pullback since February, offering a potential buying opportunity for savvy investors.
Amgen has seen a 13% decline within its long-term uptrend, making it an attractive option for those looking to “buy the dip.” The recent decline appears overdone in the short term, and there are indications that a bounce may be on the horizon.
One key indicator to watch is Tom DeMARK’s TD Combo model, which has recently issued a short-term counter-trend “buy” signal for AMGN. This signal has historically been effective in predicting short-term bounces, with the latest signal occurring at the June 2023 low. Additionally, the daily MACD, our preferred momentum indicator, is back on a “buy” signal, further supporting a potential relief rally for AMGN in the near term.
Looking ahead, we expect AMGN to surpass its 50-day moving average, with the next resistance level at a 38.2% Fibonacci retracement near $287. Support levels are found around $255-$257, marked by a 61.8% Fibonacci retracement level. While a relief rally may yield a lower high due to a long-term overbought condition on the monthly chart, the stock remains within its secular uptrend channel as defined by the monthly cloud model.
It’s important to note that the information provided is for informational purposes only and should not be considered as financial, investment, tax, or legal advice. Every individual’s financial situation is unique, so it’s recommended to consult with a financial or investment advisor before making any decisions. Visit Extreme Investor Network for more insightful content and expert guidance on all things investing. Happy investing!
