Biotech Stocks: Amgen (AMGN)
Click to Enlarge Amgen (AMGN) over the years more or less rose in sync with other biotech stocks. And much like IBB, AMGN has so far merely retraced its way back to the 200-day moving average (red line), which roughly lines up with its late-2011 uptrend.
While this certainly is a logical area for AMGN stock to attempt a bounce from, it is too early to consider the stock out of the weeds, nor is it necessarily ready to push higher again.
The going here will likely be choppy for some time, and from a technical perspective, it would be surprising to see AMGN stock rise to new highs again anytime over the coming months.
Measure any bounce in AMGN, then see whether it is merely an oversold bounce, or indeed the beginning of a new wave higher. How does one measure this? A simple way would be to watch the $120 area, which was previous support for Amgen shares.
If AMGN once again runs out of steam around this area, it’s possible we could see another down-leg toward the $100 mark in coming weeks.