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Amgen to Test 2008 Highs?

By Gary Morrow
11:42 a.m. EDT Amgen trades at new highs for the year following positive news on its late-stage bone drug trial. The stock is up over 15%, trading at its best levels since last November. Volume is extremely heavy, already triple the stock's daily average. Amgen should test its 2008 highs of $66.00 within the next few months.

AMGN Daily (Nasdaq) - Amgen Source: TradeStation

Today's ramp has left behind layers of support, including the 200-day moving average, which has been pivotal since last October's lows. The stock is well above its 200-day now but has support at higher levels. The $60.00 area was a weekly high in late December as well as the previous 2009 highs in early January. Amgen is through this point, but, considering the size of today's advance, I expect the stock to struggle a bit.

A pullback to the $58.00 level is a more likely outcome and will work off some of today's surge. A hold in this area would set the stage for a run to last year's highs.

Positions: None

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