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

Inverse head-and-shoulders formation and recent pullback make it a good time to 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.

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.

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.

AMGN Chart
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Chart Key

Article printed from InvestorPlace Media,

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