We'll start big, with $66 billion pharma firm Amgen (AMGN). Amgen has been a strong performer in the last year, rallying more than 28% over the trailing 12 months. But that rally may be far from over if the price setup in shares holds true.
That's because Amgen is currently forming an ascending triangle pattern, a bullish setup that's formed by horizontal resistance to the upside (at $90, in this case) and uptrending support below shares. As AMGN bounces between those two technical barriers, it's getting squeezed closer and closer to a breakout above resistance. When that breakout above $90 happens, traders have a buy signal for this big pharmaceutical stock.
It's important not to be early on this Amgen trade. Shares have reversed off of $90 resistance the last three times they attempted to move through it. It'll take a close above that $90 level to indicate that the Amgen trade is on.
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