Moving down the size spectrum, small-cap software firm Intralinks Holdings (IL - Get Report) is forming the exact same setup as Amgen right now. Like the big pharma firm, IL sports a horizontal resistance level to the upside (at $6.75 for IL) and uptrending support below shares. That push though $6.75 is the buyable move in this stock.
Whenever you're looking at a technical price pattern like this one, it's critical to think in terms of buyers and sellers. After all, while the "triangle" pattern is a good way to describe what's going on in AMGN and IL, geometry has nothing to do with this stock's upside potential. Instead, it all comes down to supply and demand for shares.
Here, $6.75 is a price where there's an excess of supply of shares; in other words, it's a place where sellers have been more eager to take gains and sell their shares than buyers have been to buy. That's what makes the breakout above $6.75 so significant. It indicates that buyers are finally strong enough to absorb all of the excess supply above that price level.When the push happens, keep a tight stop under IL's nearest swing low.