This
is a tricky situation. Amgen, Inc.
(NASDAQ:AMGN) has
dropped on fairly high volume the past few days. The stock is now trading on
resistance turned support at 69. A secondary factor that caught my eye when
looking at this chart was the RSI pattern.
As you can see on the 2
year daily bars chart above, RSI consistently bounces at the 30 level. RSI is
right at 30 currently. This factor combined with resistance turned support at
69 gets my attention. A long position looks attractive here, but the recent
downside volume makes me slightly cautious.
Happy Trading,
Andy Swan
co-founder, DaytradeTeam
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