Above Resistance: Amgen

Published on Tuesday, 03 July 2012 07:00 Written by TradersHuddle Wire

New York, July 3rd (TradersHuddle.com) - Shares of Amgen Inc. (NASDAQ:AMGN) closed the session at $74.36 just above calculated resistance at $73.75. The stock effectively broke out and grasped the attention of momentum traders, which could eventually push the stock to a different trading range.

Amgen Inc. (NASDAQ:AMGN) develops, manufactures, and markets human therapeutics based on cellular and molecular biology. The company concentrates on the areas of hematology, cancer, infectious disease, endocrinology, neurobiology, and inflammation.

The stock was trading in a well defined range with support at $56.00 and resistance at $73.75. Given that this range was broken, traders will be closely monitoring Amgen's price action to gather clues on the future direction.

From a technical perspective, it can be expected that previous resistance becomes support, as the new range gets defined. However, given that Amgen is still near the broken resistance level, traders will be focusing on the $73.75 level to see if the stock holds the breakout without rolling over.