Amgen Bull Flag: Just What the Doctor Ordered?
Biotechnology stocks surged in the fourth quarter thanks to some takeovers and buyers returning to the health-care sector.
Amgen is the biggest of all the biotechs with $144 billion of market cap. It's also one of the few big names that's broken out to new highs. (Along with 
Vertex.)
AMGN's been climbing a wall of worry about competition since the summer. The flurry of good news began in June when its AMG 510 cancer compound successfully shrank lung tumors. Then, earnings beat in both July and October as its new biosimilar franchise surprised the naysayers.
Now's the first real pullback since breaking out. AMGN's bullish flag may create potential for a continuation move higher, with Friday's low of $236.24 as a level for risk management. The next earnings report is estimated for Jan. 28.
Amgen is the biggest of all the biotechs with $144 billion of market cap. It's also one of the few big names that's broken out to new highs. (Along with Vertex.)AMGN's been climbing a wall of worry about competition since the summer. The flurry of good news began in June when its AMG 510 cancer compound successfully shrank lung tumors. Then, earnings beat in both July and October as its new biosimilar franchise surprised the naysayers.
Now's the first real pullback since breaking out. AMGN's bullish flag may create potential for a continuation move higher, with Friday's low of $236.24 as a level for risk management. The next earnings report is estimated for Jan. 28.
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