AMGN finds buyers around 190.50 for the third day in a row
Amgen Inc. (AMGN) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
AMGN ended Thursday at 198.49 gaining $5.35 (2.77%), significantly underperforming the Nasdaq 100 (5.72%). Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (AMGN as at Mar 26, 2020):
Thursday's trading range has been $9.22 (4.77%), that's below the last trading month's daily average range of $12.74. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for AMGN. Prices continued to consolidate within a tight trading range between 190.01 and 202.85 where it has been caught now for the last three trading days.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. In spite of a weak opening the market managed to close above the prior day's open and close, forming a bullish Engulfing Candle. Additionally, two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
After trading down to 190.50 earlier during the day, the share bounced off the key technical support level at 190.75 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on Monday, AMGN gained 8.83% on the following trading day. Amgen found buyers again today around 190.50 for the third trading day in a row after having found demand at 190.01 in the previous session and at 190.01 two days ago.
Although the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Buying might accelerate should prices move above the nearby swing high at 202.85 where further buy stops could get triggered.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Low close to prior two Lows" stand out. Its common bullish interpretation has been confirmed for Amgen. Out of 122 times, AMGN closed higher 58.20% 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 54.92% with an average market move of 0.63%.