Amgen Breaking Out?

Published on Wednesday, 03 February 2010 09:52 Written by Christopher Lynn

New York, jan 3^rd (TradersHuddle.com) - Shares of Amgen Inc. (NASDAQ:AMGN) closed the trading session at $59.23 just above calculated resistance at $58.93 moving to what appears to be a new range, as this move will clearly raise the attention of momentum buyers.

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 was trading in a well defined range with support at $54.65 and resistance at $58.93, given that this range was broken traders will be closely monitoring the stock?s price action for clues of direction.

From a technical perspective it can be expected that previous resistance becomes support, as the new range gets defined, however, given that Amgen's stock is still near the broken resistance level, traders will be focusing on $58.93 to see if the stock holds the breakout without rolling over.