Today’s sharp morning session upside reversal in Amgen (AMGN) is “threatening” to put in a key upside reversal day — provided the stock closes above 57.14. So far today, the action has the right look and feel of a price structure that ended a correction — in this case a sideways digestion period since Jan 4 — ahead of a thrust into a new upleg.
If that proves to be the case, then AMGN should climb quickly to test its key 9-month down trendline at 57.65, which if hurdled should unleash a powerful upside follow-through towards 59.00 initially thereafter.
At this juncture, only a complete traverse of today’s range and a break of 56.00 will compromise the timing of the anticipated upside breakout.
