AMGN broke out to new highs in late 2019 and crashed along with the rest of the market in March. It then proceeded to make a higher low in June as it found support at its 200-day ( ). This produced a cup-and-handle chart pattern.
The stock had a tight above its 50-day in late June, and then ripped to new highs after winning a patent case against Novartis.
AMGN pulled back last week. It formed a on Friday and is now bouncing at its 8-day ( ). That line can serve as a potential risk-management area.
There are two reasons why it may not dip a lot more. First, AMGN hasn’t run much yet versus its December highs. So, there may not be many profit-takers yet. Second, the in IBB following its recent breakout could provide tailwinds.
AMGN reports after the closing bell on July 28.