With the continued deterioration of market breadth, it’s becoming more difficult to stay long in this market. It’s also not the best risk/reward anymore to buy breakouts, but instead wait for pullback plays and support to buy into.
Amgen (AMGN) is a large cap biotech stock that has seen great relative strength over the past few days. After a clean breakout above 140, it has since pulled into that 140 level.
The stock is retesting a previous resistance level, the rising 20 day moving average, and a key trendline. This offers good risk reward for a long trade.
Option traders can consider the Oct 140 call with a stop if it holds under 140 for too long.
