Amgen: False Breakdown and Uptrend?

Amgen has been fighting higher this year, and some traders may think a longer-term uptrend is in place.

The first pattern on today’s chart is the move under $310 after mixed quarterly results. The drugmaker quickly recovered as Wall Street focused on its pipeline. The resulting drop and rebound could be viewed as a “false breakdown,” which is potentially bullish.

Next is the price zone between the closing highs of February and June. AMGN has stayed above that area for almost two weeks. Has old resistance become new support?

It’s also holding the rising 50-day simple moving average. That could reflect a bullish intermediate-term trend.

Finally, Wilder’s Relative Strength Index (RSI) just crossed above its 14-day average. Similar crossovers have preceded moves in both directions. (See arrows.)

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