TA Discover: Why You Should Look At Amgen (AMGN) Today!
$Amgen(AMGN)$ is a leading player in the Drug Manufacturers industry, is currently trading at $262.57 with a market cap of $140.87 billion.
Amgen has a significant increase of 19.88% of its stock price over the last 4 weeks and as of 11 Aug 23, we have seen the stock gaining 3.81%.
Something we might take note is the Horizon Pharma acquisition by Amgen. There is an ongoing preliminary injunction to stop the Horizon Pharma acquisition by regulatory.
I will be watching for future development on this as this could mean a gap up for Amgen if the acquisition is to go through.
In this article, I will be using Technical Analysis to find out whether Amgen have outperformance potential. Considering that Amgen has a better case to acquire Horizon Pharma.
Technical Analysis – Simple Moving Averages (SMA)
Amgen is in a bear trend and they have reported $5.00 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $4.44 by $0.56.
Amgen earned $7 billion during the quarter, compared to analyst estimates of $6.66 billion. Currently it look like it is still in a bear trend, but the positive results and the acquisition would bring Amgen to bull trend soon.
I would be looking for an opportunity to have a good early entry.
Technical Analysis – Relative Strength Index (RSI)
RSI has shown that Amgen has entered the overbought region after the price surge after the good earnings result.
This could mean there might be some sell offs due to profit taking. I would be monitoring the price action on how it is trading on 14 Aug 2023.
Technical Analysis – Average Directional Index (ADX)
ADX is showing to be between 20 and 40, which indicate a developing trend. With positive results and the acquisition coming, I believe it should be going into the strong trend.
+DI is above -DI which suggest a strong bullish upside move.
I believe Amgen would have a upside move in its trading on 14 Aug 2023 but I would monitor its price action for more confirmation.
Technical Analysis – Parabolic SAR (SAR)
Using Parabolic, Amgen is having a strong bullish upside move, and there is no potential reversal happening anytime soon.
I will be monitoring how it will be trading in premarket today (14 Aug 23) to determine if there will be a strong upwards trend and a bullish one.
Summary
Based on the different technical indicators, Amgen has shown to have potential of a bullish upside but one concern still pending is its acquisition of Horizon Pharma.
If the deal goes through, we could see a very nice uptrend from Amgen, but if the deal falls through I would expect a lot of sell offs happening.
I will be monitoring how this stock would be trading today (14 Aug) at premarket, before determining whether to plan for a trade.
Appreciate if you could share your thoughts in the comment section whether you think Amgen would be a good trade today (14 Aug 23)?
@TigerStars @Daily_Discussion @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.
Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.
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AMGN is correcting itself within upper range. Last week RSI was 82. Today is 77. I suggest to wait after Xdiv which is this Thursday. I believe the stock will go down to between $252 to $255 and RSI will probably drop to about 60/65. That is the time to buy more if you wish. BUT if you are long time holder like me and want to capture $2.13 dividend, go ahead and buy any time now.
It is under valued. It is on uptrend. But you can only get so much milk out of a cow in such a short time. So have patience and wait for pull back and then jump back in.
RSI 82 incredible strength Took 17 percent long term gains here She’s running way 🥵 had to be prudent
Just take part of the profits
[得意]