Can Amgen Finally Make an Upside Breakout?

Pharmaceutical giant Amgen Inc. (AMGN) has been trading sideways in the $250-$260 area many times since April. The $64,000 question is whether AMGN can stage an upside breakout.

Let’s check the charts and the derivative indicators for an answer.

In the daily bar chart of AMGN, below, we can see that the shares are poised to test the $255-$260 area again. Prices are trading above the rising 50-day moving average line and above the rising 200-day line. The trading volume has been steady but we are standing watch for a surge in trading volume to give validity to an upside breakout.

The On-Balance-Volume (OBV) line has been steady since July and is close to a new high. The Moving Average Convergence Divergence (MACD) oscillator is bullish.

In the weekly Japanese candlestick chart of AMGN, below, we can see that the $260 level has been chart resistance for a long time. Rally failures date back to the early part of 2020. Prices are back above the rising 40-week moving average line.

The weekly OBV line shows us a very strong rise from late 2021 and tells us that buyers of AMGN have been very aggressive. The MACD oscillator is turning up for what I would anticipate to be a new outright buy signal.

In this daily Point and Figure chart of AMGN, below, we can see a potential price target in the $319 area.

In this weekly Point and Figure chart of AMGN, below, we can see a $323 price target.

Bottom-line strategy: Aggressive traders could go long AMGN on strength above $264. The $319 to $323 area is our first price target.