Trading Idea: - Is Amgen close to Resistance?

Published on Monday, 10 September 2012 07:16 Written by TradersHuddle Wire

New York, September 10th (TradersHuddle.com) - Shares of Amgen Inc. (NASDAQ:AMGN) are trading very close to calculated resistance at $85.28. The stock ended the trading session at just $83.96, which is near levels that make it difficult to buy or start a position.

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.

Amgen's stock range is defined by its calculated support defined at $75.70 and by the resistance level at $85.28; the stock is clearly over-extended from support, making it harder for participants to establish fresh longs.

Traders don't have a clear entry point for Amgen. However, as the stock pulls back towards $75.70 it will definitely provide a reference point to establish a trade. On the other hand, if the stock breaks above its resistance level at $85.28 then traders will get an opportunity to enter the stock as it moves to a higher range.