New Breakout Target for Top Biotech Amgen

AMGN broke from a small triangle on encouraging results for a new oncology drug


Amgen (NASDAQ:AMGN) — This 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. S&P estimates 2013 earnings per share (EPS) at $7.21 and recently added a 2014 estimate of $8.

We’ve followed AMGN in the Trade of the Day for over a year, recommending it at various lower prices. The last time was on Feb. 27, when it was suggested as a buy under $90.

On Thursday, Amgen presented encouraging results for a new oncology drug for treatment of melanoma, the most aggressive form of skin cancer. This announcement brought in late-afternoon buyers and broke the stock from a small triangle with a top at $94. Support is now at $92.

Buy under $95 for a trading target of $115. AMGN is also recommended for inclusion in a long-term portfolio as a cornerstone biotechnology stock.

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