AMGN closes above its opening price after recovering from early selling pressure
Amgen Inc. (AMGN) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
AMGN finished the week -2.55% lower at 223.48 after gaining $0.44 (0.2%) today on low volume, slightly underperforming the Nasdaq 100 (0.29%) ahead of tomorrow's Presidents' Day market holiday. Trading up to $1.59 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (AMGN as at Feb 14, 2020):
Friday's trading range has been $2.15 (0.96%), that's below the last trading month's daily average range of $4.71. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for AMGN.
One bullish candlestick pattern matches today's price action, the Hammer.
After trading as low as 221.34 during the day, the market found support at the 100-day moving average at 222.70. The last time this happened on August 5, 2019, AMGN gained 1.63% on the following trading day. Prices are trading close to the key technical resistance level at 226.26 (R1).
Amgen shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 100" stand out. Its common bullish interpretation has been confirmed for Amgen. Out of 34 times, AMGN closed higher 55.88% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 52.94% with an average market move of 0.93%.