Trading Idea - Is Amgen close to Support?

Published on Friday, 27 August 2010 08:00 Written by TradersHuddle Staff

New York, August 27th (TradersHuddle.com) - Shares of Amgen Inc. (NASDAQ:AMGN) are trading very close to calculated support at $50.71 with current price action closing at just $50.93 places the stock price near levels where traders will start paying attention.

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 current stock range is defined by current calculated support defined at $50.71 and by the resistance level at $56.14, which should be used by traders planning their trades.

Traders wanting to establish a position should place close attention to Amgen's price action, and establish a position as close to support as possible, but only after buying materializes. Traders should understand that the resistance point at $56.14 might limit their upside, however if the stock breaks resistance, it could be a good point to add to the position.