AMGN slips to lowest close since June 30th
Amgen Inc. (AMGN) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, AMGN finished the month 3.74% higher at 244.67 after losing $1.47 (-0.6%) today, significantly underperforming the Nasdaq 100 (1.78%). Today's close at 244.67 marks the lowest recorded closing price since June 30th. Closing below Thursday's low at 245.20, the share confirmed its breakout through the prior session low after trading up to $5.79 below it intraday.
Daily Candlestick Chart (AMGN as at Jul 31, 2020):
Friday's trading range has been $6.67 (2.72%), that's slightly above the last trading month's daily average range of $6.06. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for AMGN.
One bullish candlestick pattern matches today's price action, the Takuri Line. The last time a Takuri Line showed up on May 8th, AMGN gained 3.37% on the following trading day.
Prices are trading close to the key technical resistance level at 247.07 (R1).
While the stock is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Among the three market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Closed below last periods low" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Amgen. Out of 398 times, AMGN closed higher 52.76% 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 59.30% with an average market move of 0.92%.