Amgen’s Bullish Chart Pattern Targets a 15% Run Higher

by Sam Collins | October 7, 2013 1:26 am

Amgen (AMGN[1]) — 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.

Since the last Trade of the Day recommendation on July 1[2], 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.

Technically AMGN has formed a bullish inverse head-and-shoulders with a trading target of $130. The recent pullback following a breakout in mid-September gives investors an excellent opportunity to enter a position in this extraordinary biotech stock at just 15.5 times 2013 estimated earnings.

10 07 13 amgn 300x195 Amgen's Bullish Chart Pattern Targets a 15% Run Higher
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chart key 300x84 Amgen's Bullish Chart Pattern Targets a 15% Run Higher[3]

Endnotes:
  1. AMGN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMGN
  2. on July 1: http://investorplace.com/2013/07/trade-of-the-day-amgen-amgn/
  3. [Image]: http://investorplace.com/wp-content/uploads/2013/05/chart-key.gif

Source URL: http://investorplace.com/2013/10/trade-of-the-day-amgen-amgn-2/
Short URL: http://invstplc.com/1fs0EO1