Amgen Vs. Fibonacci
The earnings announcement
last night for Amgen boosted shares today, as they traded up over 4 points. This
is obviously good news and puts a better fundamental spin on the company. However,
here is what I see from a technical standpoint:
1) The trend is down.
2) Key Fibonacci price
resistance from 42.93-45.25.
3) There have been at
least three previous rallies of similar size in the past few months that ultimately
rolled over.
So, how did I marry up the
earnings announcement and the technical picture above? In my mind, quite
simple: The
Fibonacci price support zone is THE key decision for
Amgen
(
AMGN |
Quote |
Chart |
News |
PowerRating). If
it cannot clear this zone to the upside, then the downtrend is in place and
I’d be looking for opportunities to short.Â
However, if AMGN can clear this
price-resistance zone, then I’d switch gears and start considering long trades.
That is, I would wait for a pullback into a Fibonacci price support zone and
consider a long swing trade against the newly calculated support zones, after
clearing this resistance. For now, I’m treating this as a possible short opportunity,
and looking for triggers to go short against this resistance zone. If triggered
in my initial stop would be just above the resistance zone around 45.50.
Good night!