AMGN breaks below Tuesday's low
Amgen Inc. (AMGN) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
AMGN finished Wednesday at 247.76 losing $0.59 (-0.24%), but still notably outperforming the Nasdaq 100 (-1.67%). The bears were in full control today, moving the market lower throughout the whole session. Closing below Tuesday's low at 248.10, the stock confirmed its breakout through the previous session low after trading up to $1.10 below it intraday.
Daily Candlestick Chart (AMGN as at Sep 16, 2020):
Wednesday's trading range has been $4.35 (1.73%), that's below the last trading month's daily average range of $5.97. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for AMGN.
Notwithstanding a strong opening the share closed below the prior day's open and close, forming a bearish Engulfing Candle. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading as low as 247.00 during the day, Amgen found support at the 50-day moving average at 247.39. After having been unable to move above 251.92 in the previous session, the market ran into sellers again around the same price level today, missing to move higher than 251.35. The last time this happened on September 11th, AMGN actually gained 1.46% on the following trading day.
Though still in a long-term uptrend, the short and medium-term trends both turned bearish already.
Buying might accelerate should prices move above the nearby swing high at 251.92 where further buy stops could get activated.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Down Close Near Low of Period" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Amgen. Out of 430 times, AMGN closed higher 56.74% 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 64.19% with an average market move of 1.35%.