Amgen (NASDAQ:AMGN) — This independent biotech company has been a leader in the development of genetically based research and treatment for cancer, anemia, rheumatoid arthritis and a host of other major illnesses. It markets five of the world’s best-selling biotech drugs.
The Trade of the Day first recommended AMGN on Dec. 19 at $60.25 when it broke from a huge cup-and-handle formation. We recommended it again on April 3 while the stock was consolidating within a bull channel with a target of $75.
On Monday, AMGN broke from its channel, and on Wednesday, the company reported Q1 earnings of $1.59, beating analysts’ estimates of $1.43, and posted higher-than-expected revenues. Analysts raised their target to $79.
Technically the break from the bull channel is a strong indication that prices are headed higher. The MACD triggered a new buy signal, and we are raising the trading target for AMGN to $80.