Amgen Inc. has been trending up since December last year. We can observe that price has recently reached a higher high at the resistance level of 258.00. Therefore, we are only looking for buy entries for this stock.
258.00 is a very strong resistance level; we can see from the past that prices have rejected more than 9 times from this level. After rejections, prices retraced but eventually rose again to retest this level multiple times. Last week, price gapped down from this resistance level, dropping back to the trend line. Therefore, this gives us a great opportunity to buy the pullback.
Entry Criteria:
We can observe from the past price movement that when the price touched the current ascending trend line, a gap up immediately was formed, followed by a strong bullish momentum sending the price back to the previous high. Therefore, during the next few days, we will be looking for a gap up from the trend line. Then we will place our buy stop orders to capture the bullish momentum.
This is a high probability buy setup because many factors support another bullish impulsive movement which could potentially send the price back to retest the recent high.
258.00 is a very strong resistance level; we can see from the past that prices have rejected more than 9 times from this level. After rejections, prices retraced but eventually rose again to retest this level multiple times. Last week, price gapped down from this resistance level, dropping back to the trend line. Therefore, this gives us a great opportunity to buy the pullback.
Entry Criteria:
We can observe from the past price movement that when the price touched the current ascending trend line, a gap up immediately was formed, followed by a strong bullish momentum sending the price back to the previous high. Therefore, during the next few days, we will be looking for a gap up from the trend line. Then we will place our buy stop orders to capture the bullish momentum.
This is a high probability buy setup because many factors support another bullish impulsive movement which could potentially send the price back to retest the recent high.
