In these difficult times, where a virus is damaging most of our global economy, investors tend to reach out to big biotech companies for solutions, such as Amgen Inc. (NASDAQ:AMGN). Although AMGN is considered to be a giant in its industry, the stock still took a hit together with the rest of the market in the end of February. Unless the company starts delivering some results on how to help contain the global virus outbreak, the share price could be destined to stay under negative pressure. For now, the technical picture paints exactly that. Although we are seeing a bit of a correction to the upside, still, AMGN remains below its short-term downside resistance line taken from the highest point of February. If that line stays intact, we could see another slide, hence why we will stay cautiously-bearish, at least for now.
As mentioned above, if the share price rises, but fails to overcome the aforementioned downside line, this might force a few existing investors to liquidate some of their positions. The stock might then slide back to the 190.00 hurdle, which is near the lows of March 24th and 25th. If that area fails to withhold, its break could open the door for a drop to the 181.00 zone, marked near the low of March 12th and near an intraday swing low of March 23rd. Slightly below it lies the current lowest point of March, at 176.65, which may provide additional support.
Looking at our oscillators on the 4-hour chart, we see that the RSI and the MACD, are both pointing slightly higher. This may come in line with the idea of seeing a bit of upside in the near term until we could reach the previously-mentioned downside line. That said, the RSI is currently just fractionally above 50 and the MACD, although above its trigger line, remains below zero. This supports the idea of staying a bit cautious, for now.
Alternatively, if the aforementioned downside line breaks and AMGN travels above the 210.67 barrier, marked by the high of March 18th, that could attract more buyers into the game, what may help send the stock further north. The next obstacle on the way up could be at 216.29, a break of which might push the share price to the 223.68 area, marked by the highs of February 19th and 21st. Initially, AMGN could temporarily stall around there, but if the buying interest is still strong, a break of that area would confirm another higher high and the next resistance level to consider might be at 230.21, marked by the high of February 12th.
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