We’ve opened a new bullish trade in Amgen, Inc. (NASDAQ:AMGN). Using Profit Scanner powered by Recognia, we’ve identified a bullish “continuation diamond” on AMGN.
The bullish continuation diamond pattern was completed on April 21, when Amgen closed above the resistance level of the pattern. Based on the pattern Profit Scanner identified, we expect the stock to climb to a target price range of $190-$195 (as illustrated by the green bars in the image below).
Amgen has had a roller-coaster week since reporting better-than-expected earnings on April 21, and we expect now that the stock has enjoyed the first downhill of the roller coaster, it is ready for the big upswing.
Amgen had a fantastic earnings announcement last week. The company beat revenue expectations by $120 million and earnings expectations by $0.38 per share — coming in at $5.03 billion and $2.48 per share, respectively. The company even raised its 2015 guidance. Unfortunately, resistance at ~$172.50 proved too tough to break, and the stock gave back all of its post-earnings gains. It then consolidated for a few days before dropping along with the rest of the biotech sector yesterday. However, the stock has found support at ~$162.50 and looks like quite a bargain down at these prices.
We expect Amgen — and its amazing, lucrative lineup of therapeutics — to continue climbing from this point and to eventually challenge resistance at $172.50 again.
‘Buy to open’ the AMGN June 170 Calls (AMGN150619C00170000) for a maximum price of $3.60.
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You can learn more about identifying price patterns – like a bullish continuation diamond – and using them to project how far you think a stock is going to move in their Advanced Technical Analysis Program.
