Close to Key Levels: Amgen

Published on Tuesday, 12 February 2013 06:52 Written by TradersHuddle Wire

New York, February 12th (TradersHuddle.com) - Amgen Inc. (NASDAQ:AMGN) closed the trading day at $84.92, near its 50 day and 200 day moving averages set at $86.99 and $81.15 respectively. Amgen's price action placed the stock above the 200 day moving average but below its 50 day moving average, a setup that signals a possible break out.

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 seems to be setting up for a tight range between the 200 day moving average as support and the 50 day moving average serving as resistance.

A tiered approach, appears to be the best strategy to maximize possible movements in the stock, as traders could establish a small position in Amgen and wait for the stock to break out above its 50 day moving average at $86.99. Then they could add to the position as momentum builds with the breakout. On the flip side, if support being referenced at the 200 day moving average set at $81.15 breaks, it could signal further downside pressure for Amgen.