Amgen’s Chart Flashing Buy

AMGN's rally produced a MACD buy signal and formed a bullish 'V'

   
Amgen’s Chart Flashing Buy

Amgen (AMGN) — This biotechnology 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.

On Oct. 7, I said, “Since the last Trade of the Day recommendation on July 1, with the stock near $100, S&P has increased its guidance for the company. For 2013, it raised earnings per share (EPS) estimates by 6 cents to $7.30, but reduced its 2014 estimate by 46 cents to $7.75 due to acquisition charges related to the purchase of Onyx Pharmaceuticals. Its 12-month target is $128.”

On Oct. 22, Amgen reported that Q3 earnings rose 24%, well above estimates, and the company’s management raised its 2013 earnings estimate 5 cents to $7.35 to $7.45. Analysts’ consensus estimate for 2014 is $8.13.

AMGN formed an inverse head-and-shoulders formation (bullish) with a trading target of $130. After a false breakout above $115, the stock retreated to $106 and then quickly rallied above $115. The rally produced a MACD buy signal and formed a bullish “V.” Buy AMGN at the market with a revised trading target of $130 to $135.

10 28 13 amgn 300x198 Amgens Chart Flashing Buy
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chart key 300x84 Amgens Chart Flashing Buy


Article printed from InvestorPlace Media, http://investorplace.com/2013/10/trade-day-amgen-amgn/.

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